Procurement of Works For Above 6 Million Rupees NCB July 2010

STANDARD BIDDING DOCUMENT
Procurement of Works
National Competitive Bidding (NCB)
(For above 6 million Rupees)
Issued by:
Government of Nepal
Office of the Prime Minister and Council of Ministers
Public Procurement Monitoring Office
Tahachal, Kathmandu
July 2010
BIDDING DOCUMENT
Procurement of Works
National Competitive Bidding (NCB)
IFB No.
[Insert the name of Public

Entity]
Issued on:
Invitation for Bids No.:
NCB No.:
Purchaser:
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Preface
This Standard Bidding Document (SBD) for Procurement of Works has been prepared by the
Government of Nepal (GON), Public Procurement Monitoring Office (PPMO) to facilitate post-
qualification bidding procedures used for the procurement of works through National Competitive
Bidding (NCB).
The SBD includes; a format for the Invitation of Bids, Bidding Procedures, Requirements and
Conditions of Contract and Contract Forms.
While using the SBD, the following directions should be considered.
1. No change should be made to the wording of the Section 1, Instructions to Bidders (ITB)
and Section 7, General Conditions of Contract. All provisions related to a particular
contract or contracts should be stated/included in other relevant sections of the Document.
2. The attached information forms may require minor adaptation to suit the individual
requirements of particular contract.
3. The italicized footnotes and remarks in the SBD are not part of the text. They contain
guidance and instruction for the Agencies preparing the document.
If any provisions of this document are inconsistent with Public Procurement Act (PPA), 2063 or
Public Procurement Regulations (PPR), 2064, the provision of this document shall be void to the
extent of such inconsistency and the provision of PPA and PPR shall prevail.
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Abbreviations
BD......................... Bidding Document
BDF... Bidding Forms
BDS...................... Bid Data Sheet
BOQ .. Bill of Quantities
COF .. Contract Forms
DP . Development Partners
DoLIDAR . Department of Local Infrastructure Development and Agricultural Roads
ELI . Eligibility
EQC...................... Evaluation and Qualification Criteria
EXP Experience
FIN . Financial
GCC...................... General Conditions of Contract
GoN...................... Government of Nepal
ICC....................... International Chamber of Commerce
ITB........................ Instructions to Bidders
JV .. Joint Venture
LIT .. Litigation
NCB ... National Competitive Bidding
PAN Permanent Account Number
PPA .. Public Procurement Act
PPMO Public Procurement Monitoring Office
PPR ... Public Procurement Regulations
PL......................... Profit & Loss
SBD...................... Standard Bidding Document
SCC .. Special Conditions of Contract
TS......................... Technical Specifications
VAT Value Added Tax
WRQ . Works Requirements
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Table of Contents
INVITATION OF BIDS ------------------------------------------------------------------ 6
PART I BIDDING PROCEDURES

Section 1 - Instructions to Bidders (ITB) --------------------------------------- 7
Section 2 - Bid Data Sheet (BDS) ---------------------------------------------- 27
Section 3 - Evaluation and Qualification Criteria (EQC) ---------------- 31
Section 4 - Bidding Forms (BDF) ---------------------------------------------- 42
PART II REQUIREMENTS
Section 5 - Works Requirements (WRQ) ------------------------------------ 61
Section 6 - Preamble to the Bill of Quantities (BOQ) --------------------- 66
PART III CONDITIONS OF CONTRACT AND CONTRACT FORMS

Section 7 - General Conditions of Contract (GCC) ----------------------- 69
Section 8 - Special Conditions of Contract (SCC) ------------------------- 91
Section 9 - Contract Forms (COF) --------------------------------------------- 95
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Invitation for Bids
Government of Nepal (GoN)
[name of Employer]
Invitation for Bids for the [Name of Contract]
Contract Identification No: __________________
Date of publication: __________________
Name of the Development Partner [if applicable]: ______________________

Loan/Credit/Grant No [if applicable]: ______________________
1. The Government of Nepal [GoN] has allocated funds or received a loan/credit/grant from [GoN or
Development Partner] towards the cost of [Name of Project] and intends to apply part of the funds to
cover eligible payments under the Contract for [Name and identification number of Contract] 1.
Bidding is open to all eligible Nepalese and Foreign Bidders.
2. [Name of Employer] invites sealed bids from eligible bidders for the construction of [Brief description
of the Works]2 [Insert an additional paragraph indicating clear cut, fail-pass qualification criteria in order
to enable bidders to make an informed decision whether to pursue a specific contract and, if so, either as
a single entity or in joint venture.]
3. Eligible Bidders may obtain further information and inspect the Bidding Documents at the office of
[Name, location, mailing address, telephone and facsimile numbers and email address of the
Employer].
4. A complete set of Bidding Documents may be purchased from the above office of [insert name and
address] and the office of [insert name and address] by eligible Bidders on the submission of a written
application, along with the copy of company/firm registration certificate, and upon payment of a non-
refundable fee of [Insert amount]. If so requested, the Bidding Documents can also be sent by
post/courier services upon payment of additional cost of NRs. [amount]. However, the Employer will not
be responsible for delay or non-delivery of the documents so sent
5. Sealed Bids must be submitted to the above office [Name and address] on or before [Time] on [Date].
Bids received after this deadline will be rejected.
6. Bids will be opened in the presence of Bidders' representatives who choose to attend at [Time and date]
at the office of [Address of office]. Bids must be valid for a period of [Insert number of days] after bid
opening and must be accompanied by a bid security amounting to a minimum of [2.5% of the quoted
Bid Amount (Inclusive of VAT)], which shall be valid for 30 days beyond the validity period of the bid
(i.e. [Date]).
7. If the last date of purchasing, submission and opening falls on a government holiday, it shall be extended
to the next working day
8. The Employer reserves the right to accept or reject, wholly or partly any or all the bids without assigning
reason, whatsoever.
Notes:
1. Substitute contracts where bids are called concurrently for multiple contracts. Add a new para. 2 and
renumber paras 2 - 6 as follows: "Bidders may bid for one or several contracts, as further defined in the
Bidding Document. Bidders wishing to offer discounts in case they are awarded more than one contract will be
allowed to do so provided those discounts are included in the Letter of Bid.
2. A brief description of the type of work shall be provided including quantities of major works, location of the
project and other information necessary to enable potential bidders to decide whether to respond to the
invitation, a Bidding Document requires bidders to have specific experience and capabilities and therefore also
be included in this paragraph.
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PART I: BIDDING PROCEDURES
Section 1 - Instructions to Bidders
This section specifies the procedures to be followed by Bidders in the preparation and submission of their
Bids. Information is also provided on the submission, opening, and evaluation of bids and on the award of
Contract.
Table of Clauses
A. General ................................................................................................................................................. 9
1. Scope of Bid ...................................................................................................................... 9

2. Source of Funds ................................................................................................................ 9
3. Fraud and Corruption ....................................................................................................... 9
4. Eligible Bidders ............................................................................................................... 11
5. Eligible Materials, Equipment and Services .................................................................. 13
B. Contents of Bidding Document ....................................................................................................... 13
6. Sections of Bidding Document ...................................................................................... 13

7. Clarification of Bidding Document, Site Visit, Pre-Bid Meeting ................................... 14
8. Amendment of Bidding Document................................................................................. 15
C. Preparation of Bids ........................................................................................................................... 15
9. Cost of Bidding ............................................................................................................... 15

10. Language of Bid .............................................................................................................. 15
11. Documents Comprising the Bid ..................................................................................... 15
12. Letter of Bid and Schedules ........................................................................................... 16
13. Alternative Bids ............................................................................................................... 16
14. Bid Prices and Discounts ............................................................................................... 16
15. Currency of Bid and Payment ........................................................................................ 17
16. Documents Comprising the Technical Proposal .......................................................... 17
17. Documents Establishing the Qualifications of the Bidder ........................................... 17
18. Period of Validity of Bids ................................................................................................ 18
19. Bid Security ..................................................................................................................... 18
20. Format and Signing of Bid.............................................................................................. 19
D. Submission and Opening of Bids .................................................................................................... 19
21. Sealing and Marking of Bids .......................................................................................... 19

22. Deadline for Submission of Bids ................................................................................... 20
23. Late Bids .......................................................................................................................... 20
24. Withdrawal, and Modification of Bids ............................................................................ 20
25. Bid Opening..................................................................................................................... 20
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E. Evaluation and Comparison of Bids ............................................................................................... 21
26. Confidentiality ................................................................................................................. 21

27. Clarification of Bids......................................................................................................... 21
28. Deviations, Reservations, and Omissions ..................................................................... 21
29. Determination of Responsiveness ................................................................................. 22
30. Nonconformities, Errors, and Omissions ...................................................................... 22
31. Correction of Arithmetical Errors ................................................................................... 23
32. Evaluation of Bids ........................................................................................................... 23
33. Comparison of Bids ........................................................................................................ 24
34. Qualification of the Bidder .............................................................................................. 24
35. Employers Right to Accept Any Bid, and to Reject Any or All Bids ........................... 24
F. Award of Contract ............................................................................................................................. 24
36. Award Criteria .................................................................................................................. 24

37. Letter of Intent to Award the Contract/ Notification of Award ...................................... 24
38. Performance Security ..................................................................................................... 25
39. Signing of Contract ......................................................................................................... 25
40. Complain and Review ..................................................................................................... 25
41. Provisions of PPA and PPR .............................................................................................. 6
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Section 1 - Instructions to Bidders
A. General
1. Scope of Bid 1.1 In connection with the Invitation for Bids indicated in the Bid Data
Sheet (BDS), the Employer, as indicated in the BDS, issues this
Bidding Document for the procurement of Works as specified in
Section 5 (Works Requirements). The name, identification, and
number of Contracts of the National Competitive Bidding (NCB) are
provided in the BDS.
1.2 Throughout this Bidding Document:
(a) the term in writing means communicated in written form and

delivered against receipt;
(b) except where the context requires otherwise, words indicating the
singular also include the plural and words indicating the plural also
include the singular; and
(c) day means calendar day.
2. Source of Funds 2.1 GoN Funded: In accordance with its annual program and budget,
approved by the GoN, the implementing agency indicated in the BDS
plans to apply a portion of the allocated budget to eligible payments
under the contract(s) for which this Bidding Document is issued.
Or
DP Funded: The GoN has applied for or received financing (hereinafter

called funds) from the Development Partner (hereinafter called the
DP) indicated in the BDS toward the cost of the project named in
the BDS. The GoN intends to apply a portion of the funds to eligible
payments under the contract(s) for which this Bidding Document is
issued.
2.2 DP Funded: Payment by the DP will be made only at the request of the
GoN and upon approval by the DP in accordance with the terms and
conditions of the financing agreement between the GoN and the DP
(hereinafter called the Loan Agreement), and will be subject in all
respects to the terms and conditions of that Loan Agreement. No party
other than the GoN shall derive any rights from the Loan Agreement or
have any claim to the funds.
2.3 Public Entity' own Resource Funded.
3. Fraud and 3.1 Anticorruption related laws require that GoNs officials (including
Corruption beneficiaries of funds), as well as bidders, suppliers, and contractors
and their sub-contractors under GoN/DP-financed contracts, observe
the highest standard of ethics during the procurement and execution of
such contracts. In pursuance of this policy, this bidding document;
(a) defines, for the purposes of this provision, the terms set forth
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below as follows:
(i) corrupt practice means the offering, giving, receiving, or

soliciting, directly or indirectly, anything of value to influence
improperly the actions of another party;
(ii) fraudulent practice means any act or omission, including a

misrepresentation, that knowingly or recklessly misleads, or
attempts to mislead, a party to obtain a financial or other
benefit or to avoid an obligation;
(iii) coercive practice means impairing or harming, or threatening to

impair or harm, directly or indirectly, any party or the property of
the party to influence improperly the actions of a party;
(iv) collusive practice means an arrangement between two or

more parties designed to achieve an improper purpose,
including influencing improperly the actions of another party.
(v) obstructive practice means:
(aa) deliberately destroying, falsifying, altering or concealing of

evidence material to the investigation or making false
statements to investigators in order to materially impede a
GoN/DP investigation into allegations of a corrupt,
fraudulent, coercive or collusive practice; and/or
threatening, harassing or intimidating any party to prevent
it from disclosing its knowledge of matters relevant to the
investigation or from pursuing the investigation; or
(bb) acts intended to materially impede the exercise of the

GoNs/DPs inspection and audit rights provided for
under sub-clause 3.5 below.
(b) will reject bid(s) if it determines that the bidder has, directly or
through an agent, engaged in corrupt, fraudulent, collusive,
coercive, or obstructive practices in competing for the
contract in question;
(c) will sanction a firm or individual, including declaring ineligible,

for a stated period of time, to be awarded a GoN/DP-financed
contract if it at any time determines that the firm has, directly
or through an agent, engaged in corrupt, fraudulent,
collusive, coercive, or obstructive practices in competing for,
or in executing, a GoN/DP-financed contract.
3.2 The Bidder shall not carry out or cause to carry out the following acts
with an intention to influence the implementation of the procurement
process or the procurement agreement :
(a) give or propose improper inducement directly or indirectly,

(b) distortion or misrepresentation of facts,
(c) engaging in corrupt or fraudulent practice or involving in such act,
(d) interference in participation of other competing bidders,
(e) coercion or threatening directly or indirectly to cause harm to the
person or the property of any person to be involved in the
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procurement proceedings,
(f) collusive practice among bidders before or after submission of
bids for distribution of works among bidders or fixing
artificial/uncompetitive bid price with an intention to deprive the
Employer the benefit of open competitive bid price,
(g) contacting the Employer with an intention to influence the
Employer with regards to the bids or interference of any kind in
examination and evaluation of the bids during the period from the
time of opening of the bids until the notification of award of
contract.
3.3 Without prejudice to any other rights of the Employer, GoN may
blacklist a Bidder for a period of one (1) to three (3) years for its
conduct on the following grounds and seriousness of the act committed
by the bidder:
(a) if convicted by a court of law in a criminal offence which

disqualifies the Bidder from participating in the contract,
(b) if it is established that the contract agreement signed by the
Bidder was based on false or misrepresentation of Bidders
qualification information,
3.4 A bidder declared blacklisted and ineligible by the GoN, Public

procurement Monitoring Office (PPMO) and/or the DP in case of DP
funded project, shall be ineligible to bid for a contract during the period
of time determined by the GoN, PPMO and/or the DP.
3.5 The Contractor shall permit the GoN/DP to inspect the Contractors
accounts and records relating to the performance of the Contractor and
to have them audited by auditors appointed by the GoN/DP, if so
required by the GoN/DP.
3.6 DP Funded: In pursuance of the fraud and corruption policy, the DP.
(a) will reject a proposal if it determines that the bidder

recommended for award has directly or through an agent,
engaged in corrupt, fraudulent, collusive, coercive, or
obstructive practices in competing for the contract in question;
(b) will cancel the portion of the loan/ credit/ grant allocated to a
contract if it determines at any time that representative(s) of the
GoN or of a beneficiary of the fund engaged in corrupt,
fraudulent, collusive, or coercive practices during the
procurement or the execution of that contract, without the GoN
having taken timely and appropriate action satisfactory to the
DP to address such practices when they occur.
4. Eligible Bidders 4.1 A Bidder may be a natural person, private entity, or government-owned
entitysubject to ITB 4.5or any combination of them in the form of a
Joint Venture (JV) under an existing agreement, or with the intent to
constitute a legally-enforceable joint venture. In the case of a JV:
(a) all partners shall be jointly and severally liable for the execution
of the Contract in accordance with the Contract terms.
Maximum number of JV shall be three. The qualification
requirement of the parties to the JV shall be as specified in the
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BDS, and
(b) the JV shall nominate a Representative who shall have the

authority to conduct all business for and on behalf of any and all
the parties of the JV during the bidding process and, in the
event the JV is awarded the Contract, during Contract
execution.
4.2 A Bidder, and all parties constituting the Bidder, shall have the
nationality of any country or eligible countries mentioned in the BDS. A
Bidder shall be deemed to have the nationality of a country if the
Bidder is a citizen or is constituted, or incorporated, and operates in
conformity with the provisions of the laws of that country. This criterion
shall also apply to the determination of the nationality of proposed sub
Contractors or suppliers for any part of the Contract including related
services.
4.3 A Bidder shall not have a conflict of interest. A Bidder found to have a
conflict of interest shall be disqualified. A Bidder may be considered to
be in a conflict of interest with one or more parties in this bidding
process, if:
(a) they have controlling partners in common; or
(b) they receive or have received any direct or indirect subsidy from
any of them; or
(c) they have the same legal representative for purposes of this bid; or
(d) they have a relationship with each other, directly or through

common third parties, that puts them in a position to have access
to information about or influence on the Bid of another Bidder, or
influence the decisions of the Employer regarding this bidding
process; or
(e) a Bidder participates in more than one bid in this bidding process.
Participation by a Bidder in more than one Bid will result in the
disqualification of all Bids in which the party is involved. However,
this does not limit the inclusion of the same sub Contractor in more
than one bid; or
(f) a Bidder or any of its affiliates participated as a consultant in the

preparation of the design or technical specifications of the Contract
that is the subject of the Bid; or
(g) a Bidder or any of its affiliates has been hired (or is proposed to be
hired) by the Employer as Engineer for the Contract.
4.4 A firm that is under a declaration of ineligibility by the GoN/DP in

accordance with ITB 3, at the date of the deadline for bid submission
or thereafter, shall be disqualified.
4.5 Enterprises owned by Government shall be eligible only if they can

establish that they are legally and financially autonomous and operate
under commercial law, and that they are not a dependent agency of
the GoN.
4.6 Bidders shall provide such evidence of their continued eligibility

satisfactory to the Employer, as the Employer shall reasonably
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request.
4.7 In case a prequalification process has been conducted prior to the

bidding process, this bidding is open only to prequalified Bidders.
4.8 Firms shall be excluded in any of the cases, if
(a) by an act of compliance with a decision of the United Nations

Security Council taken under Chapter VII of the Charter of the
United Nations, the Employers country prohibits any import of
goods or Contracting of works or services from that country or any
payments to persons or entities in that country.
(b) DP Funded: as a matter of law or official regulation, Nepal prohibits

commercial relations with that country, provided that the DP is
satisfied that such exclusion does not preclude effective
competition for the supply of goods or related services required;
(c) DP Funded: a firm has been determined to be ineligible by the DP

in relation to their guidelines or appropriate provisions on
preventing and combating fraud and corruption in projects financed
by them.
4.9 The Domestic Bidder who has obtained Permanent Account Number
(PAN) and Value Added Tax (VAT) Registration Certificate(s) and Tax
Clearance Certificate from the Inland Revenue Office or proof of
submission of audited PL report to the Inland Revenue Office shall only
be eligible. The foreign bidder submitting the documents indicated in
the BDS at the time of bid submission and a declaration to submit the
document(s) indicated in the BDS at the time of contract agreement
shall only be eligible.
5. Eligible Materials, 5.1 The materials, equipment and services to be supplied under the
Equipment and Contract shall have their origin in any source countries as defined in
Services ITB 4.2 above and all expenditures under the Contract will be limited to
such materials, equipment, and services. At the Employers request,
Bidders may be required to provide evidence of the origin of materials,
equipment and services.
5.2 For purposes of ITB 5.1 above, origin means the place where the
materials and equipment are mined, grown, produced or
manufactured, and from which the services are provided. Materials
and equipment are produced when, through manufacturing,
processing, or substantial or major assembling of components, a
commercially recognized product results that differs substantially in its
basic characteristics or in purpose or utility from its components.
B. Contents of Bidding Document
6. Sections of 6.1 The Bidding Document consist of Parts I, II, and III, which include all
Bidding Document the Sections indicated below, and should be read in conjunction with
any Addenda issued in accordance with ITB 8.
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PART I Bidding Procedures
Section 1 - Instructions to Bidders (ITB)
Section 2 - Bid Data Sheet (BDS)
Section 3 - Evaluation and Qualification Criteria (EQC)
Section 4 - Bidding Forms (BDF)
PART II Requirements
Section 5 Works Requirements (WRQ)
Section 6 Bill of Quantities (BOQ)
PART III Conditions of Contract and Contract Forms
Section 7 - General Conditions of Contract (GCC)
Section 8 - Special Conditions of Contract (SCC)
Section 9 - Contract Forms (COF)
6.2 The Invitation for Bids issued by the Employer is not part of the Bidding
Document.
6.3 The Employer is not responsible for the completeness of the Bidding
Document and their Addenda, if they were not obtained directly from
the source stated by the Employer in the Invitation for Bids.
6.4 The Bidder is expected to examine all instructions, forms, terms, and
specifications in the Bidding Document. Failure to furnish all
information or documentation required by the Bidding Document may
result in the rejection of the bid.
7. Clarification of 7.1 A prospective Bidder requiring any clarification of the Bidding

Bidding Document shall contact the Employer in writing at the Employers
Document, Site address indicated in ITB 7.5 or raise any question or curiosity during
Visit, Pre-Bid the pre-bid meeting if provided for in accordance with ITB 7.4. The
Meeting Employer shall be required to make available as soon as possible the
answer to such question or curiosity in writing to any request for
clarification, provided that such request is received as mentioned in
BDS. The Employer shall forward copies of its response to all Bidders
who have acquired the Bidding Document in accordance with ITB 6.3,
including a description of the inquiry but without identifying its source.
Should the Employer deem it necessary to amend the Bidding
Document as a result of a request for clarification, it shall do so
following the procedure under ITB 8 and ITB 22.2.
7.2 The Bidder is encouraged to visit and examine the Site of Works and
its surroundings and obtain for itself, on its own risk and responsibility,
all information that may be necessary for preparing the bid and
entering into a Contract for construction of the Works. The costs of
visiting the Site shall be at the Bidders own expense.
7.3 The Bidder and any of its personnel or agents will be granted
permission by the Employer to enter upon its premises and lands for
the purpose of such visit, but only upon the express condition that the
Bidder, its personnel, and agents will release and indemnify the
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Employer and its personnel and agents from and against all liability in
respect thereof, and will be responsible for death or personal injury,
loss of or damage to property, and any other loss, damage, costs, and
expenses incurred as a result of the inspection.
7.4 The Bidders designated representative is invited to attend a pre-bid
meeting, if provided for in the BDS. The purpose of the meeting will be
to clarify issues and to answer questions on any matter that may be
raised at that stage.
7.5 The Bidder is requested, as far as possible, to submit any questions in
writing, to reach the Employer as mentioned in BDS.
7.6 Minutes of the pre-bid meeting, including the text of the questions
raised, without identifying the source, and the responses given,
together with any responses prepared after the meeting, will be
transmitted promptly to all Bidders who have acquired the Bidding
Document in accordance with ITB 6.3. Any modification to the Bidding
Document that may become necessary as a result of the pre-bid
meeting shall be made by the Employer exclusively through the issue
of an addendum pursuant to ITB 8 and not through the minutes of the
pre-bid meeting.
7.7 Non attendance at the pre-bid meeting will not be a cause for
disqualification of a Bidder.
8. Amendment of 8.1 At any time prior to the deadline for submission of bids, the Employer
Bidding Document may amend the Bidding Document by issuing addenda.
8.2 Any addendum issued shall be part of the Bidding Document and shall
be communicated in writing to all who have obtained the Bidding
Document from the Employer in accordance with ITB 6.3.
8.3 To give prospective Bidders reasonable time in which to take an

addendum into account in preparing their bids, the Employer may, at
its discretion, extend the deadline for the submission of bids, pursuant
to ITB 22.2
C. Preparation of Bids
9. Cost of Bidding 9.1 The Bidder shall bear all costs associated with the preparation and
submission of its Bid, and the Employer shall in no case be
responsible or liable for those costs, regardless of the conduct or
outcome of the bidding process.
10. Language of Bid 10.1 The Bid, as well as all correspondence and documents relating to the
bid exchanged by the Bidder and the Employer, shall be written in the
language specified in the BDS. Supporting documents and printed
literature that are part of the Bid may be in another language provided
they are accompanied by an accurate translation of the relevant
passages in the language specified in the BDS, in which case, for
purposes of interpretation of the Bid, such translation shall govern.
11. Documents 11.1 The Bid shall comprise the following:

Comprising the
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Bid (a) Letter of Bid;
(b) completed Schedules, in accordance with ITB 12 and 14, or as

stipulated in the BDS;
(c) Bid Security, in accordance with ITB 19;
(d) alternative bids, at Bidders option and if permissible, in

accordance with ITB 13;
(e) written confirmation authorizing the signatory of the Bid to commit

the Bidder, in accordance with ITB 20.2;
(f) documentary evidence in accordance with ITB 17 establishing the

Bidders qualifications to perform the Contract;
(g) Technical Proposal in accordance with ITB 16;
(h) In the case of a bid submitted by a JV, the JV agreement, or letter

of intent to enter into a JV including a draft agreement, indicating at
least the parts of the Works to be executed by the respective
partners; and
(i) Any other document required in the BDS.
12. Letter of Bid and 12.1 The Letter of Bid, Schedules, and all documents listed under Clause
Schedules 11, shall be prepared using the relevant forms in Section 4 (Bidding
Forms), if so provided. The forms must be completed without any
alterations to the text, and no substitutes shall be accepted. All blank
spaces shall be filled in with the information requested.
13. Alternative Bids 13.1 Unless otherwise indicated in the BDS, alternative bids shall not be
considered.
13.2 When alternative times for completion are explicitly invited, a statement
to that effect will be included in the BDS, as will the method of
evaluating different times for completion.
13.3 When specified in the BDS pursuant to ITB 13.1, and subject to ITB
13.4 below, Bidders wishing to offer technical alternatives to the
requirements of the Bidding Document must first price the Employers
design as described in the Bidding Document and shall further provide
all information necessary for a complete evaluation of the alternative
by the Employer, including drawings, design calculations, technical
specifications, breakdown of prices, and proposed construction
methodology and other relevant details. Only the technical alternatives,
if any, of the lowest evaluated Bidder conforming to the basic technical
requirements shall be considered by the Employer.
13.4 When specified in the BDS, Bidders are permitted to submit alternative
technical solutions for specified parts of the Works. Such parts will be
identified in the BDS and described in Section 5 (Employers
Requirements). The method for their evaluation will be stipulated in
Section 3 (Evaluation and Qualification Criteria).
14. Bid Prices and 14.1 The prices and discounts quoted by the Bidder in the Letter of Bid and
Discounts in the Schedules shall conform to the requirements specified below.
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14.2 The Bidder shall submit a bid for the whole of the works described in
ITB 1.1 by filling in prices for all items of the Works, as identified in
Section 4 (Bidding Forms). In case of Unit Rate Contracts, the Bidder
shall fill in rates and prices for all items of the Works described in the
Bill of Quantities. Items against which no rate or price is entered by
the Bidder will not be paid for by the Employer when executed and
shall be deemed covered by the rates for other items and prices in the
Bill of Quantities.
14.3 The price to be quoted in the Letter of Bid shall be the total price of the
Bid, excluding any discounts offered.
14.4 Unconditional discounts, if any, and the methodology for their
application shall be quoted in the Letter of Bid, in accordance with ITB
12.1.
14.5 If so indicated in ITB 1.1, bids are invited for individual Contracts or for
any combination of Contracts (packages). Bidders wishing to offer any
price reduction for the award of more than one Contract shall specify in
their bid the price reductions applicable to each package, or
alternatively, to individual Contracts within the package. Price
reductions or discounts shall be submitted in accordance with ITB
14.3, provided the bids for all Contracts are submitted and opened at
the same time.
14.6 Unless otherwise provided in the BDS and the Conditions of Contract,
the prices quoted by the Bidder shall be fixed. If the prices quoted by
the Bidder are subject to adjustment during the performance of the
Contract in accordance with the provisions of the Conditions of
Contract, the Bidder shall furnish the indices and weightings for the
price adjustment formulae in the Table of Adjustment Data in Section 4
(Bidding Forms) and the Employer may require the Bidder to justify its
proposed indices and weightings.
14.7 The bidder is subject to taxes such as VAT, social charges or income
taxes on non-resident international personnel, and also duties, fees,
levies on amounts payable by the employer under the Contract.
All duties, taxes, and other levies payable by the Contractor under the
Contract, or for any other cause, as of the date mentioned in BDS prior
to the deadline for submission of bids, shall be included in the rates
and prices and the total bid price submitted by the Bidder.
15. Currency of Bid 15.1 The currency of the bid and payment shall be in Nepalese Rupees.
and Payment
16. Documents 16.1 The Bidder shall furnish a Technical Proposal including a statement of
Comprising the work methods, equipment, personnel, schedule and any other
Technical information as stipulated in Section 4 (Bidding Forms), in sufficient
Proposal detail to demonstrate the adequacy of the Bidders proposal to meet
the work requirements and the completion time.
17. Documents 17.1 To establish its qualifications to perform the Contract in accordance
Establishing the with Section 3 (Evaluation and Qualification Criteria) the Bidder shall
Qualifications of provide the information requested in the corresponding information
17
the Bidder sheets included in Section 4 (Bidding Forms).
18. Period of Validity 18.1 Bids shall remain valid for the period specified in the BDS after the bid
of Bids submission deadline date prescribed by the Employer. A bid valid for a
shorter period shall be rejected by the Employer as nonresponsive.
18.2 In exceptional circumstances, prior to the expiration of the bid validity
period, the Employer may request Bidders to extend the period of validity
of their Bids. The request and the responses shall be made in writing. If a
bid security is requested in accordance with ITB 19, it shall also be
extended 30 days beyond the deadline of the extended validity period. A
Bidder may refuse the request without forfeiting its bid security. A Bidder
granting the request shall not be required or permitted to modify its Bid.
19. Bid Security 19.1 Unless otherwise specified in the BDS, the Bidder shall furnish as part
of its bid, in original form, a bid security as specified in the BDS. In the
case of a bid security, the amount shall be as specified in the BDS.
19.2 If a bid security is specified pursuant to ITB 19.1, the bid security shall
be, at the Bidders option, in any of the following forms:
(a) original copy of an unconditional bank guarantee from "A" class

commercial bank or;
(b) original copy of cash deposit voucher in the Employer's Account as

specified in BDS.
In the case of a bank guarantee, the bid security shall be submitted

either using the Bid Security Form included in Section 4 (Bidding
Forms) or in another substantially similar format approved by the
employer prior to bid submission. The form must include the complete
name of the Bidder. The bid security shall be valid for minimum thirty
(30) days beyond the original validity period of the bid, or beyond any
period of extension if requested under ITB 18.2.
19.3 The bid security issued by any foreign Bank outside Nepal must be
counter guaranteed by an "A" class commercial Bank in Nepal.
19.4 Any bid not accompanied by an enforceable and substantially

compliant bid security, if required in accordance with ITB 19.1, shall be
rejected by the Employer as nonresponsive.
19.5 If a bid security is specified pursuant to ITB 19.1, the bid security of
unsuccessful Bidders shall be returned within three days, once the
successful bidder has furnished the required performance security and
signed the Contract Agreement pursuant to ITB 38.1.
19.6 The bid security may be forfeited:
(a) if a Bidder withdraws its bid during the period of bid validity specified
by the Bidder on the Letter of Bid, except as provided in ITB 18.2 or
(b) if the successful Bidder fails to:
(i) sign the Contract in accordance with ITB 39.1; or
(ii) furnish a performance security in accordance with ITB 38.1.
19.7 The Bid Security of a JV shall be in the name of the JV that submits
the bid. If the JV has not been legally constituted at the time of bidding,
18
the Bid Security shall be in the names of all future partners as named
in the letter of intent mentioned in ITB 4.1.
20. Format and 20.1 The Bidder shall prepare one original of the documents comprising the
Signing of Bid bid as described in ITB 11 and clearly mark it ORIGINAL. Alternative
bids, if permitted in accordance with ITB 13, shall be clearly marked
ALTERNATIVE. In addition, the Bidder shall submit copies of the bid
in the number specified in the BDS, and clearly mark each of them
COPY. In the event of any discrepancy between the original and the
copies, the original shall prevail.
20.2 The original and all copies of the bid shall be typed or written in
indelible ink and shall be signed by a person duly authorized to sign on
behalf of the Bidder. This authorization shall consist of a written
confirmation as specified in the BDS and shall be attached to the bid.
The name and position held by each person signing the authorization
must be typed or printed below the signature. All pages of the bid,
except for unamended printed literature, shall be signed or initialed by
the person signing the bid.
20.3 Any amendments such as interlineations, erasures, or overwriting shall

be valid only if they are signed or initialed by the person signing the bid.
D. Submission and Opening of Bids
21. Sealing and 21.1 Bidders may always submit their bids by mail or by hand or by courier.
Marking of Bids When so specified in the BDS, bidders shall have the option of
submitting their bids electronically. Procedures for submission, sealing
and marking are as follows:
(a) Bidders submitting bids by mail, by hand or by courier shall

enclose the original and each copy of the Bid, including alternative
bids, if permitted in accordance with ITB 13, in separate sealed
envelopes, duly marking the envelopes as ORIGINAL,
ALTERNATIVE and COPY. These envelopes containing the
original and the copies shall then be enclosed in one single
envelope. The rest of the procedure shall be in accordance with
ITB sub-Clauses 21.2 and 21.3.
(b) Bidders submitting bids electronically shall follow the electronic bid
submission procedures specified in the BDS.
21.2 The inner and outer envelopes shall:bear the name and address of the
Bidder;
(a) be addressed to the Employer as provided in BDS 22.1;
(b) bear the specific identification of this bidding process indicated in
BDS 1.1; and
(c) bear a warning not to open before the time and date for bid
opening.
(d) If all envelopes are not sealed and marked as required, the
Employer will assume no responsibility for the misplacement or
19
premature opening of the bid.
22. Deadline for 22.1 Bids must be received by the Employer at the address and no later
Submission of than the date and time indicated in the BDS.
Bids
22.2 The Employer may, at its discretion, extend the deadline for the
submission of bids by amending the Bidding Document in accordance
with ITB 8, in which case all rights and obligations of the Employer and
Bidders previously subject to the deadline shall thereafter be subject to
the deadline as extended.
23. Late Bids 23.1 The Employer shall not consider any bid that arrives after the deadline
for submission of bids, in accordance with ITB 22. Any bid received by
the Employer after the deadline for submission of bids shall be
declared late, rejected, and returned unopened to the Bidder.
24. Withdrawal, and 24.1 A Bidder may withdraw, or modify its bid after it has been submitted by
Modification of sending a written notice in a sealed envelope, duly signed by an
Bids authorized representative, and shall include a copy of the authorization
in accordance with ITB 20.2, (except that withdrawal notices do not
require copies). The corresponding modification of the bid must
accompany the respective written notice. All notices must be:
(a) prepared and submitted in accordance with ITB 20 and ITB 21

(except that withdrawal notices do not require copies), and in
addition, the respective envelopes shall be clearly marked
WITHDRAWAL, MODIFICATION; and
(b) received by the Employer prior to the deadline prescribed for

submission of bids, in accordance with ITB 22.
24.2 Bids requested to be withdrawn in accordance with ITB 24.1 shall be

returned unopened to the Bidders after completion of the bid opening.
24.3 No bid may be withdrawn, or modified in the interval between the

deadline for submission of bids and the expiration of the period of bid
validity specified by the Bidder on the Letter of Bid or any extension
thereof.
25. Bid Opening 25.1 The Employer shall open the bids in public at the address, date and
time specified in the BDS in the presence of Bidders` designated
representatives and anyone who choose to attend. Any specific
electronic bid opening procedures required if electronic bidding is
permitted in accordance with ITB 21.1, shall be as specified in the
BDS.
25.2 First, envelopes marked WITHDRAWAL shall be opened and read

out. and the envelope with the corresponding bid shall not be opened,
but returned to the Bidder. No bid withdrawal shall be permitted unless
the corresponding withdrawal notice contains a valid authorization to
request the withdrawal and is read out at bid opening. Next, envelopes
marked MODIFICATION shall be opened and read out with the
corresponding bid. No bid modification shall be permitted unless the
corresponding modification notice contains a valid authorization to
request the modification and is read out at bid opening. Only
envelopes that are opened and read out at bid opening shall be
20
considered further.
25.3 All other envelopes shall be opened one at a time, reading out: the
name of the Bidder; the Bid Price(s), including any discounts and
alternative bids and indicating whether there is a modification; the
presence of a bid security and any other details as the Employer may
consider appropriate. Only discounts and alternative offers read out at
bid opening shall be considered for evaluation.
Unless otherwise specified in the BDS, all pages of the Letter of Bid
and Bill of Quantities are to be initialed by representative of the Bidder
and Employer attending the bid opening.
No bid shall be rejected at bid opening except for late bids, in

accordance with ITB 23.1.
The Employer shall prepare a record of the bid opening that shall
include, as a minimum: the name of the Bidder and whether there is a
withdrawal, or modification; the Bid Price, per Contract if applicable,
including any discounts and alternative offers; and the presence or
absence of a bid security, if one was required. The Bidders
representatives who are present shall be requested to sign the record.
The omission of a Bidders signature on the record shall not invalidate
the contents and effect of the record. A copy of the record shall be
distributed to all Bidders.
E. Evaluation and Comparison of Bids
26. Confidentiality 26.1 Information relating to the examination, evaluation, comparison, and
post-qualification of bids and recommendation of Contract award, shall
not be disclosed to Bidders or any other persons not officially
concerned with such process until information on Contract award is
communicated to all Bidders.
26.2 Any attempt by a Bidder to influence the Employer in the evaluation of

the bids or Contract award decisions may result in the rejection of its bid.
26.3 Notwithstanding ITB 26.2, from the time of bid opening to the time of
Contract award, if any Bidder wishes to contact the Employer on any
matter related to the bidding process, it may do so in writing.
27. Clarification of 27.1 To assist in the examination, evaluation, and comparison of the bids,
Bids and qualification of the Bidders, the Employer may, at its discretion,
ask any Bidder for a clarification of its bid. Any clarification submitted
by a Bidder that is not in response to a request by the Employer shall
not be considered. The Employers request for clarification and the
response shall be in writing. No change in the prices or substance of
the bid shall be sought, offered, or permitted, except to confirm the
correction of arithmetic errors discovered by the Employer in the
evaluation of the bids, in accordance with ITB 31.
27.2 If a Bidder does not provide clarifications of its bid by the date and time
set in the Employers request for clarification, its bid may be rejected.
28. Deviations, 28.1 During the evaluation of bids, the following definitions apply:
Reservations, and
21
Omissions (a) Deviation is a departure from the requirements specified in the
Bidding Document;
(b) Reservation is the setting of limiting conditions or withholding

from complete acceptance of the requirements specified in the
Bidding Document; and
(c) Omission is the failure to submit part or all of the information or

documentation required in the Bidding Document.
29. Determination of 29.1 The Employers determination of a bids responsiveness is to be based

Responsiveness on the contents of the bid itself, as defined in ITB11.
29.2 A substantially responsive bid is one that meets the requirements of

the Bidding Document without material deviation, reservation, or
omission. A material deviation, reservation, or omission is one that,
(a) if accepted, would:
(i) affect in any substantial way the scope, quality, or

performance of the Works specified in the Contract; or
(ii) limit in any substantial way, inconsistent with the Bidding

Document, the Employers rights or the Bidders obligations
under the proposed Contract; or
(b) if rectified, would unfairly affect the competitive position of other

Bidders presenting substantially responsive bids.
29.3 The Employer shall examine the technical aspects of the bid submitted
in accordance with ITB 16, Technical Proposal, in particular, to confirm
that all requirements of Section 5 (Works Requirements) have been
met without any material deviation, reservation or omission.
29.4 If a bid is not substantially responsive to the requirements of the

Bidding Document, it shall be rejected by the Employer and may not
subsequently be made responsive by correction of the material
deviation, reservation, or omission.
30. Nonconformities, 30.1 Provided that a bid is substantially responsive, the Employer may
Errors, and waive any nonconformities in the bid.
Omissions
30.2 Provided that a bid is substantially responsive, the Employer may
request that the Bidder submit the necessary information or
documentation, within a reasonable period of time, to rectify nonmaterial
nonconformities in the bid related to documentation requirements.
Requesting information or documentation on such nonconformities shall
not be related to any aspect of the price of the bid. Failure of the Bidder
to comply with the request may result in the rejection of its bid.
30.3 Provided that a bid is substantially responsive, the Employer shall

rectify quantifiable nonmaterial nonconformities related to the Bid
Price. To this effect, the Bid Price may be adjusted, for comparison
purposes only, to reflect the price of a missing or non-conforming item
or component. The adjustment shall be made using the methods
22
indicated in Section 3 (Evaluation and Qualification Criteria).
30.4 If minor discrepancies are found such as in technical specification,

description, feature which does not make the bid to be rejected, then
the cost, which is calculated to the extent possible due to such
differences, shall be included while evaluating the bid.
30.5 If the value of such nonconformities is found more than fifteen percent
the quoted amount of the bidder on account of small differences
pursuant to ITB 30.4, such bid shall be considered ineffective in
substance and shall not be involved in evaluation.
31. Correction of 31.1 Provided that the bid is substantially responsive, the Employer shall
Arithmetical correct arithmetical errors on the following basis:
Errors
(a) only for unit price Contracts, if there is a discrepancy between the
unit price and the total price that is obtained by multiplying the unit
price and quantity, the unit price shall prevail and the total price
shall be corrected, unless in the opinion of the Employer there is
an obvious misplacement of the decimal point in the unit price, in
which case the total price as quoted shall govern and the unit price
shall be corrected;
(b) if there is an error in a total corresponding to the addition or

subtraction of subtotals, the subtotals shall prevail and the total
shall be corrected; and
(c) if there is a discrepancy between words and figures, the amount in

words shall prevail, unless the amount expressed in words is
related to an arithmetic error, in which case the amount in figures
shall prevail subject to (a) and (b) above.
31.2 If the Bidder that submitted the lowest evaluated bid does not accept
the correction of errors, its bid shall be disqualified and its bid security
may be forfeited.
32. Evaluation of Bids 32.1 The Employer shall use the criteria and methodologies listed in this
Clause. No other evaluation criteria or methodologies shall be
permitted.
32.2 To evaluate a bid, the Employer shall consider the following:
(a) the bid price, excluding Provisional Sums and the provision, if any,
for contingencies in the Summary Bill of Quantities, and Value
Added Tax for Unit Rate Contracts, or Schedule of Prices for lump
sum Contracts, but including Day work items, where priced
competitively;
(b) price adjustment for correction of arithmetic errors in accordance
with ITB 31.1;
(c) price adjustment due to discounts offered in accordance with ITB
14.4;
(d) adjustment for nonconformities in accordance with ITB 30.3;
(e) application of all the evaluation factors indicated in Section 3
(Evaluation and Qualification Criteria);
32.3 The estimated effect of the price adjustment provisions of the
23
Conditions of Contract, applied over the period of execution of the
Contract, shall not be taken into account in bid evaluation.
32.4 If this Bidding Document allows Bidders to quote separate prices for
different Contracts, and to award multiple Contracts to a single Bidder,
the methodology to determine the lowest evaluated price of the
Contract combinations, including any discounts offered in the Letter of
Bid, is specified in Section 3 (Evaluation and Qualification Criteria).
32.5 If the bid for an Unit Rate Contract, which results in the lowest
Evaluated Bid Price, is seriously unbalanced, front loaded or
substantially below updated estimates in the opinion of the Employer,
the Employer may require the Bidder to produce detailed price analysis
for any or all items of the Bill of Quantities, to demonstrate the internal
consistency of those prices with the construction methods and
schedule proposed. After evaluation of the price analysis, taking into
consideration the schedule of estimated Contract payments, the
Employer may require that the amount of the performance security be
increased at the expense of the Bidder to a level sufficient as
mentioned in BDS to protect the Employer against financial loss in the
event of default of the successful Bidder under the Contract.
33. Comparison of 33.1 The Employer shall compare all substantially responsive bids in
Bids accordance with ITB 32.2 to determine the lowest evaluated bid.
34. Qualification of 34.1 The Employer shall determine to its satisfaction whether the Bidder
the Bidder that is selected as having submitted the lowest evaluated and
substantially responsive bid meets the qualifying criteria specified in
Section 3 (Evaluation and Qualification Criteria).
34.2 The determination shall be based upon an examination of the
documentary evidence of the Bidders qualifications submitted by the
Bidder, pursuant to ITB 17.1.
34.3 An affirmative determination of qualification shall be a prerequisite for

award of the Contract to the Bidder. A negative determination shall
result in disqualification of the bid, in which event the Employer shall
proceed to the next lowest evaluated bid to make a similar
determination of that Bidders qualifications to perform satisfactorily.
35. Employers Right 35.1 The Employer reserves the right to accept or reject any bid, and to
to Accept Any Bid, annul the bidding process and reject all bids at any time prior to
and to Reject Any Contract award, without thereby incurring any liability to Bidders. In
or All Bids case of annulment, all bids submitted and specifically, bid securities,
shall be promptly returned to the Bidders.
F. Award of Contract
36. Award Criteria 36.1 The Employer shall award the Contract to the Bidder whose offer has
been determined to be the lowest evaluated bid and is substantially
responsive to the Bidding Document, provided further that the Bidder is
determined to be qualified to perform the Contract satisfactorily.
37. Letter of Intent to 37.1 The Employer shall notify the concerned Bidder whose bid has been
24
Award the selected in accordance with ITB 36.1 within seven days of the selection
Contract/ of the bid, in writing that the Employer has intention to accept its bid and
Notification of the information regarding the name, address and amount of selected
Award bidder shall be given to all other bidders who submitted the bid.
37.2 If no bidder submits an application pursuant to ITB 40 within a period of

seven days of the notice provided under ITB 37.1, the Employer shall,
accept the bid selected in accordance with ITB 36.1 and Letter of
Acceptance shall be communicated to the selected bidder prior to the
expiration of period of Bid validity, to furnish the performance security
and sign the contract within fifteen days.
37.3 At the same time, the Employer shall affix a public notice on the result
of the award on its notice board and may make arrangements to post
the notice into its website, if it has; and if it does not have, into the
website of the Public Procurement Monitoring Office, identifying the bid
and lot numbers and the following information: (i) name of each Bidder
who submitted a Bid; (ii) bid prices as read out at Bid Opening; (iii) name
and evaluated prices of each Bid; (iv) name of bidders whose bids were
rejected and the reasons for their rejection; and (v) name of the winning
Bidder, and the Price it offered, as well as the duration and summary
scope of the Contract awarded.
38. Performance 38.1 Within Fifteen (15) days of the receipt of Letter of Acceptance from the
Security Employer, the successful Bidder shall furnish the performance security
from A class Commercial Bank in accordance with the conditions of
Contract using Sample Form for the Performance Security included in
Section 9 (Contract Forms), or another form acceptable to the
Employer.
38.2 Failure of the successful Bidder to submit the above-mentioned

Performance Security or to sign the Contract Agreement shall
constitute sufficient grounds for the annulment of the award and
forfeiture of the bid security. In that event the Employer may award the
Contract to the next lowest evaluated Bidder whose offer is
substantially responsive and is determined by the Employer to be
qualified to perform the Contract satisfactorily. The process shall be
repeated according to ITB 37.
39. Signing of 39.1 The Employer and the successful Bidder shall sign the Contract
Contract Agreement within the period as stated ITB 38.1.
Within thirty (30) days from the date of issuance of notification
pursuant to ITB 37.1 unsuccessful bidders may request in writing to the
Employer for a debriefing seeking explanations on the grounds on
which their bids were not selected. The Employer shall promptly
respond in writing to any unsuccessful Bidder who, requests for
debriefing within 30 days of publication of the contract award.
40. Complain and 40.1 If a Bidder is dissatisfied with the Procurement proceedings or the
Review decision made by the Employer in the intention to award the Contract,
it may file an application to the Chief of the Public Entity within Seven
(7) days of providing the notice under ITB 37.1 by the Public Entity, for
review of the proceedings stating the factual and legal grounds.
40.2 Late application filed after the deadline pursuant to ITB 40.1 shall not
25
be processed.
40.3 The chief of Public Entity shall, within five (5) days after receiving the
application, give its decision with reasons, in writing pursuant to ITB 40.1:
(a) whether to suspend the procurement proceeding and indicate
the procedure to be adopted for further proceedings; or
(b) to reject the application.
The decision of the chief of Public Entity shall be final for the Bid
amount up to the value as stated in BDS.
40.4 If the Bidder is not satisfied with the decision of the Public Entity in
accordance with ITB 40.3, or the decision by the Employer is not given
within five (5) days of receipt of application pursuant to ITB 40.1, it can,
within seven (7) days of receipt of such decision, file an application to the
Review Committee of the GoN, stating the reason of its disagreement on
the decision of the chief of Public Entity and furnishing the relevant
documents, provided that its Bid amount is more than Rupees Thirty
Million (Rs. 30,000,000). The application may be sent by hand, by post, by
courier, or by electronic media at the risk of the Bidder itself.
40.5 Late application filed after the deadline pursuant to ITB 40.4 shall not
be processed.
40.6 Within three (3) days of the receipt of application from the Bidder,
pursuant to ITB 40.4, the Review Committee shall notify the
concerning Public Entity to furnish its procurement proceedings,
pursuant to ITB 40.3.
40.7 Within three (3) days of receipt of the notification pursuant to ITB 40.6,
the Public Entity shall furnish the copy of the related documents to the
Review Committee.
40.8 The Review Committee, after inquiring from the Bidder and the Public
Entity, if needed, shall give its decision within one (1) month of the
receipt of the application filed by the Bidder, pursuant to ITB 40.4.
40.9 The Bidder, filing application pursuant to ITB 40.4, shall have to furnish
a cash amount or Bank guarantee from "A" class commercial bank
equivalent to zero point five percent (0.5%) amount of its quoted Bid
amount with the validity period of at least ninety (90) days from the
date of the filing of application pursuant to ITB 40.4.
40.10 If the claim made by the Bidder pursuant to ITB 40.4 is justified, the
Review Committee shall have to return the security deposit to the
applicant, pursuant to ITB 40.9, within seven (7) days of such decision
made.
41. Provision of PPA If any provision of this document are inconsistent with Public Procurement
and PPR Act (PPA), 2063 or Public Procurement Regulations (PPR), 2064, the
provision of this documents shall be void to the extent of such inconsistency
and the provision of PPA and PPR shall prevail.
26
Section 2 - Bid Data Sheet
This section consists of provisions that are specific to each procurement and supplement the
information or requirements included in Section I. Instructions to Bidders.
A. General
ITB 1.1 The number of the Invitation for Bids is : ______________________________
ITB 1.1 The Employer is: ___________________________________________________
ITB 1.1 The name of the bidding process is: ______________________________

The identification number of the bidding process is: _________________
The number and identification of lots comprising this bidding process is: _______
ITB 2.1 The name of the Project is: ________________________________________

The DP is: _____________________________________________________
The implementing agency is: _______________________________________
Select one option as appropriate. [GoN Funded or DP Funded]
ITB 4.1 Eligible countries [insert if GoN funded all countries, For DP funded as per
their list of eligible country]
(Specify the list of eligible countries in a separate section)
ITB 4.1 (a) One partner of the joint venture at least 40 (fourty) percent.
Each partner of the joint venture at least 25 (twenty five) percent.
ITB 4.9 The foreign bidder is to submit [insert the list of documents and the type of
declaration required]
B. Bidding Document
ITB 7.1 For clarification purposes only, the Employers address is:
Attention: ______________________________
Street Address: _________________________
Floor/Room number: _____________________
Country: ______________________________
Telephone: : __________________________
Facsimile number: ______________________
Electronic mail address: __________________
27
ITB 7.4 A Pre-Bid meeting [insert shall or shall not] held. Pre bid meeting will take
place at the following date, time and place:
Date: ____________
Time: ____________
Place: ____________
A site visit [insert shall be or shall not be] organized by the Employer.
ITB 7.5 Time for request: Requests for clarification should be received by the Employer
no later than: 10 days prior to the deadline for submission of bids .
C. Preparation of Bids
ITB 10.1 The language of the bid is: _________(English / Nepali)____
ITB 11.1 (b) In accordance with ITB 12 and ITB 14, the following schedules shall be submitted
with the bid, including the priced Bill of Quantities for Unit Rate Contracts and
Schedule of Prices for lump sum contracts: ______________________________
ITB 11.1 (i) The Bidder shall submit with its bid the following additional documents:
[insert if any additional documents required]
ITB 13.1 Alternative bids [insert shall be or shall not be] permitted.
ITB 13.2 Alternative times for completion [insert shall be or shall not be] permitted.
If alternative times for completion are permitted, the evaluation method will be as
specified in Section 3 (Evaluation and Qualification Criteria).
ITB 13.4 Alternative technical solutions shall be permitted for the following parts of the
Works:
If alternative technical solutions are permitted, the evaluation method will be as
specified in Section 3 (Evaluation and Qualification Criteria).
ITB 14.5 The prices quoted by the Bidder shall be: [insert shall be or shall not be]
subject to price adjustment.
ITB 14.6 The prices quoted by the Bidder. [insert shall be or shall not be] subject
to adjustment during the performance of the Contract.
ITB 14.7 The date for all duties, taxes, and other levies payable by the Contractor under
the contract or for any other cause, as of the date 30 days prior to the deadline for
submission of bids
ITB 18.1 The bid validity period shall be: ..[insert Ninety or One Hundred
Twenty (90/120) days].
ITB 19.1 The Bidder shall furnish a bid security, from "A" class commercial bank with a
minimum of 2.5% of the quoted bid amount (inclusive of VAT), which shall be
28
valid for 30 days beyond the validity period of the bid.
ITB 19.2 (b) Account Name:

Bank Name:
Bank Address:
Account Number:
ITB 20.1 In addition to the original of the bid, the number of copy/ies is/are:
______________
ITB 20.2 The written confirmation of authorization to sign on behalf of the Bidder shall
indicate: [insert
(a) The name and description of the documentation required to
demonstrate the authority of the signatory to sign the Bid such as a
Power of Attorney; and
(b) In the case of Bids submitted by an existing or intended JV, an
undertaking signed by all parties (i) stating that all parties shall be
jointly and severally liable, and (ii) nominating a Representative who
shall have the authority to conduct all business for and on behalf of
any and all the parties of the JV during the bidding process and, in the
event the JV is awarded the Contract, during contract execution.]
D. Submission and Opening of Bids
ITB 21.1 Bidders [insert shall or shall not] have the option of submitting their bids
electronically.
ITB 21.1 (b) If bidders shall have the option of submitting their bids electronically, the
electronic bidding submission procedures shall be: [insert a description of the
electronic bidding submission procedures].
ITB 22.1 For bid submission purposes only, the Employers address is:
Attention:
Street Address:
Floor/Room number:
City:
ZIP Code:
Country:
The deadline for bid submission is:
Date:
Time:
ITB 25.1 The bid opening shall take place at:

Street Address:
Floor/Room number:
City:
29
Country:
Date:
Time:
ITB 25.1 If electronic bid submission is permitted in accordance with ITB 21.1, the specific
bid opening procedures shall be: [insert description of the procedures]
E. Evaluation and Comparison of Bids
ITB 32.5 The amount of the performance security be increased by Eight (8) percent of the
quoted bid price.
F. Award of Contract
ITB 40.3 The bid amount up to Rupees Thirty Million (Rs. 30000000).
30
Section 3 - Evaluation and Qualification Criteria
This Section contains all the criteria that the Employer shall use to evaluate bids and qualify Bidders if the bidding
was preceded by post-qualification exercise. GoN/DP requires bidders to be qualified by meeting predefined,
precise minimum requirements. The method sets pass-fail criteria, which, if not met by the bidder, results in
disqualification. In accordance with ITB 33 and ITB 35, no other methods, criteria and factors shall be used. The
Bidder shall provide all the information requested in the forms included in Section 4 (Bidding Forms).
Table of Criteria
1. Evaluation ................................................................................................................................................................................... 32
1.1 Adequacy of Technical Proposal .......................................................................................................................................... 32
1.2 Multiple Contracts .................................................................................................................................................................. 32
1.3 Completion Time .................................................................................................................................................................... 32
1.4 Alternative Technical Solutions ............................................................................................................................................ 32
1.5 Quantifiable Nonconformities, Errors and Omissions......................................................................................................... 33
2. Qualification ................................................................................................................................................................................ 34
2.1 Eligibility................................................................................................................................................................................. 34
2.1.1 Conflict of Interest ............................................................................................................................................................... 34
2.1.2 Government-owned Entity ................................................................................................................................................... 34
2.1.3 UN Eligibility ........................................................................................................................................................................ 34
2.1.4 Other Eligibility ................................................................................................................................................................... 34
2.2 Pending Litigation .................................................................................................................................................................. 35
2.2.1 Pending Litigation................................................................................................................................................................ 35
2.3 Financial Situation ................................................................................................................................................................. 36
2.3.1 Historical Financial Performance ......................................................................................................................................... 36
2.3.2 Average Annual Construction Turnover ............................................................................................................................... 36
2.3.3 Financial Resources ............................................................................................................................................................ 37
2.4 Experience.............................................................................................................................................................................. 38
2.4.1 General Construction Experience ........................................................................................................................................ 38
2.4.2 Specific Construction Experience ........................................................................................................................................ 38
(a) Contracts of Similar Size and Nature........................................................................................................................................ 38
(b) Construction Experience in Key Activities................................................................................................................................. 39
2.5 Personnel ............................................................................................................................................................................... 40
2.6 Equipment .............................................................................................................................................................................. 41
31
1. Evaluation
In addition to the criteria listed in ITB 32.2 (a) (e) the following criteria shall apply:
Note:
Use the evaluation criteria listed below as appropriate and required for the project.
1.1 Adequacy of Technical Proposal
Evaluation of the Bidder's Technical Proposal will include an assessment of the Bidder's
technical capacity, to mobilize key equipment and personnel for the contract consistent
with its proposal regarding work methods, scheduling, and material sourcing in sufficient
detail and fully in accordance with the requirements stipulated in Section 5 (Works
Requirements).
1.2 Multiple Contracts
Pursuant to Sub-Clause 32.4 of the Instructions to Bidders, if Works are grouped in

multiple contracts, evaluation will be as follows:
Works are grouped in multiple contracts and pursuant to Sub-Clause 32.4 of the
Instructions to Bidders, the Employer will evaluate and compare Bids on the basis of a
contract, or a combination of contracts, or as a total of contracts in order to arrive at the
least cost combination for the Employer by taking into account discounts offered by
Bidders in case of award of multiple contracts.
If a bidder submits several successful (lowest evaluated substantially responsive) bids,

the evaluation will also include an assessment of the Bidder's capacity to meet the
aggregated requirements regarding:
Experience
Financial situation
Current contract commitments,
Cash flow capacity,
Equipment to be allocated, and
Personnel to be fielded.
1.3 Completion Time
An alternative Completion Time, if permitted under ITB 13.2, will be evaluated as follows:
[insert project specific requirements]
1.4 Alternative Technical Solutions
Alternative technical solutions, if permitted under ITB 13.4, will be evaluated as follows:
32
1.5 Quantifiable Nonconformities, Errors and Omissions
The evaluated amount of quantifiable nonconformities, errors and/or omissions shall be

determined by ascertaining the price of such effect on an equal basis by adjusting the
same to the quoted price of the bid. A bid having minor deviations and having no material
deviation to cause any serious effect upon the scope, quality, characteristics, terms and
conditions, performance or any other requirements stated in the bidding documents and
to acceptable to the Employer can be considered to be substantially responsive.
33
2. Qualification
2.1 Eligibility
Criteria Compliance Requirements Documents
Joint Venture
Submission
Requirement Single Entity All Partners Each One Requirements
Combined Partner Partner
2.1.1 Conflict of Interest
No conflicts of interest in must meet existing or must meet not Letter of Bid
accordance with ITB Sub- requirement intended JV requirement applicable
Clause 4.3. must meet
requirement
2.1.2 Government-owned Entity
Applicant required to meet must meet existing or must meet not Forms
conditions of ITB Sub- requirement intended JV requirement applicable ELI -1, ELI - 2
Clause 4.5. must meet with
requirement attachments
2.1.3 UN Eligibility
Not having been declared must meet existing or must meet not Letter of Bid
ineligible based on a United requirement intended JV requirement applicable
Nations resolution or must meet
Employers country law, as requirement
described in ITB Sub-Clause
4.8.
2.1.4 Other Eligibility
o Copy of Firm Registration Certificate
o Copy of Business Registration Certificate
o Copy of VAT and PAN Registration Certificate,
o Copy of Tax Clearance Certificate/Tax return submission evidence for the F/Y..
A written declaration made by the bidder with a statement that s/he is not ineligible to
participate in the procurement proceedings; has no conflict of interest in the proposed
procurement proceedings, and has not been punished for a profession or business related
offese
34
2.2 Pending Litigation
Joint Venture
Submission
2.2.1 Pending Litigation
All pending litigation shall be must meet not must meet not Form LIT 1
treated as resolved against requirement applicable requirement applicable
the Applicant and so shall in by itself or by itself or
total not represent more than as partner as partner
.(1). percent of the to past or to past or
Applicants net worth. existing JV existing JV
Note:
(1) The percentage should normally be within the range of 50% to 100% of an Application's net worth.
35
2.3 Financial Situation
Joint Venture
Submission
2.3.1 Historical Financial Performance
Submission of audited must meet not must meet not Form FIN - 1
balance sheets and income requirement applicable requirement applicable with
statements, for the last attachments
.(1) years to demonstrate
the current soundness of the
applicants financial position.
As a minimum, a Bidder's net
worth calculated as the
difference between total
assets and total liabilities
should be positive.
Note:
(1) The financial information provided by an Applicant should be reviewed in its entirety to allow a truly
informed judgment, and the pass-fail decision on the financial position of the Applicant should be given on
this basis. Balance sheet of the past three to five years period shall be asked according to the nature of
the work.
2.3.2 Average Annual Construction Turnover

Minimum average annual must meet must meet must meet must meet Form FIN - 2
construction turnover of requirement requirement . . . . . . . . . ........
NRS .(2), calculated as
of the of the
total certified payments
requirement requirement
received for construction
contracts in progress or
completed, within best three
years out of last ten years..
Note:
(2) The amount stated should normally not be less than 1.5 x V/T, the estimated annual turnover in the
subject contract based on a straight-line projection of the Employer's estimated cost (V), over the contract
duration (T) in year. Contract duration less than one year shall be considered one year. The multiplier of
1.5 may be increased up to 2 for the nature and complexity of contracts.
36
2.3.3 Financial Resources
Using Forms FIN 3 and must meet must meet must meet must meet Form FIN 3
FIN - 4 in Section 4 (Bidding requirement requirement . . . . . . . . . ........ and
Forms) the Bidder must Form Fin 4
of the of the
demonstrate access to, or
requirement requirement
availability of, financial
resources such as liquid
assets, unencumbered real
assets, lines of credit, and
other financial means, other
than any contractual
advance payments to meet:
the following cash-
flow requirement,
.(4)., and
the overall cash flow
requirements for this
contract and its
current works
commitment.
Note:
(4) above the construction cash flow requirement for a number of months (to the nearest half-month),
determined as the total time needed by the Employer to pay a contractor's invoice, allowing for (a) the actual
time consumed for construction, from the beginning of the month invoiced, (b) the time needed by the
Engineer to issue the monthly payment certificate, (c) the time needed by the Employer to pay the amount
certified, and (d) a contingency period of one month to allow for unforeseen delays. The total period should
not exceed six months. The assessment of the monthly amount should be based on a straight-line projection
of the estimated cash flow requirement over the particular contract period, neglecting the effect of any
advance payment and retention monies, but including contingency allowances in the estimated contract cost.
The financial resources shall be adequate to cover his bid price and current work commitments, for
example [(7) x Working Capital + Lines of Credit] 40% (Current Contract Commitments) Bid Price].
37
2.4 Experience
Joint Venture
Submission
2.4.1 General Construction Experience
Experience under construction must meet not must meet not Form EXP -1
contracts in the role of requirement applicable requirement applicable
contractor, subcontractor, or
management contractor for at
least the last .(1). years
prior to the applications
submission deadline.
Note:
(1) Insert number of years in words and figures. The time period is normally 5 years or more, but may be
reduced to not less than 3 years, according to the nature of works.
2.4.2 Specific Construction Experience

(a) Contracts of Similar Size and Nature
Participation as Prime must meet must meet not not Form EXP -
contractor, management requirement requirement applicable applicable 2(a)
contractor, or subcontractor, in
at least .(2). contracts
within the last ten (10) years,
each with a value of at least
NRS .(3). that have been
successfully or are
substantially completed and
that are similar to the
proposed works. The similarity
shall be based on the physical
size, complexity, methods,
technology or other
characteristics as described in
Section 5, Works
Requirements.
Note:
(2) Insert number of contracts, The range should be one to three, depending on the size and complexity of
the subject contract, the exposure of the Employer to risk of contractor default, and conditions.
(3) Insert NRS amount, usually 80% of the estimated value of the subject contract.
Only the net amount worked out after deducting the amount for VAT shall be computed and such amount
shall be adjusted according to the updated price index of the Nepal Rastra Bank.
38
(b) Construction Experience in Key Activities
For the above or other must meet must meet not not Form EXP-
contracts executed during the all all applicable applicable 2(b)
period stipulated in 2.4.2(a) requirements requirements
above, a minimum
construction experience in
the following key activities:
* List the production rate(s) for the key activity or activities in the subject contract. The rates should be
about 80% of the estimated production rates of the key activity or activities in the subject contract as
needed to meet the expected construction schedule with due allowance for adverse climatic conditions.
39
2.5 Personnel
The Bidder must demonstrate that it has the personnel for the key positions that meet the
following requirements:
Total Work Experience
No. Position Experience In Similar
[years] Works [years]
1
The Bidder shall provide details of the proposed personnel and their experience records in
the relevant Information Forms included in Section 4 (Bidding Forms).
Note:
The managerial and technical competence of a contractor is largely related to the key personnel on site.
The extent to which the Bidder should demonstrate having staff with extensive experience should be
limited to those requiring critical operational or technical skills. The qualification criteria should therefore
refer to a limited number of such key personnel, for instance, the project or contract manager and those
superintendents working under the project manager who will be responsible for major components (e.g.,
superintendents specialized in dredging, piling, tunneling, or earthworks, as required for each particular
project).
Bidders should normally be required to name a principal candidate and an alternate for each key position.
Criteria of acceptability should be based on:
(a) a minimum number of years of experience in a similar position; and
(b) a minimum number of years of experience and/or number of comparable projects carried out
in a specified number of preceding years.
The requirement of specified education and academic qualifications is normally unnecessary for
such positions, as contractors often employ competent staff who have learned their profession "on
the job" rather than through academic training.
It is appropriate to specify that certain positions are filled by individuals who have held posts of
comparable authority for, say, three years with the Bidder, so that key staff in executive site
positions have sufficient knowledge of the Bidder's management, policy, procedures, and practices
to act with confidence and authority within that framework.
40
2.6 Equipment
The Bidder must demonstrate that it has the key equipment listed hereafter:
No. Equipment Type and Characteristics Min. Number Required
The Bidder shall provide further details of proposed items of equipment using the relevant Form in
Section 4 (Bidding Forms)
Note:
An inventory of construction equipment represents a high capital cost overhead to a contractor.
Consequently, not all competent potential bidders will maintain an inventory of high-value items
that are in suitable condition for major contracts. This is particularly so with management
contractors, who undertake construction projects mainly by subcontracting. In most cases Bidders
can readily purchase, lease, or hire equipment; thus, it is usually unnecessary for the assessment
of a contractor's qualification to depend on the contractor's owning readily available items of
equipment. The pass-fail criteria adopted should therefore be limited only to those bulky or
specialized items that are critical for the type of project to be implemented, and that may be
difficult for the contractor to obtain quickly. Examples may include items such as heavy lift cranes
and piling barges, dredgers, tunnel boring machines, asphalt mixing plants, etc. Even in such
cases, contractors may not own the specialized items of equipment, and may rely on specialist
subcontractors or equipment-hire firms. The availability of such subcontractors and of the specified
equipment should be subject to verification prior to contract award. The terms of any lease or hire
agreement for equipment should preferably include provision that the equipment will remain on the
site (or be vested in the Employer) in the event of default of the Contractor, thereby ensuring more
timely continuity of work by a replacement contractor.
41
Section 4 - Bidding Forms
This Section contains the forms which are to be completed by the Bidder and submitted as part of his Bid.
Table of Forms
Letter of Bid .................................................................................................................................................... 43
Table of Adjustment Data .............................................................................................................................. 45
Bid Security .................................................................................................................................................... 46
Technical Proposal Format ........................................................................................................................... 47
Personnel .................................................................................................................................................. 48
Equipment ................................................................................................................................................. 50
Site Organization ....................................................................................................................................... 51
Method Statement ..................................................................................................................................... 51
Mobilization Schedule ............................................................................................................................... 51
Construction Schedule .............................................................................................................................. 51
Others ........................................................................................................................................................ 51
Bidders Qualification .................................................................................................................................... 52
Form ELI 1: Bidder's Information Sheet ................................................................................................... 52
Form ELI - 2: JV Information Sheet ............................................................................................................ 53
Form LIT - 1: Pending Litigation ................................................................................................................. 54
Form FIN - 1: Financial Situation ................................................................................................................ 55
Form FIN - 2: Average Annual Construction Turnover ............................................................................... 56
Form FIN 3: Financial Resources .......................................................................................................... 57
Form FIN- 4: Current Contract Commitments / Works in Progress .......................................................... 57
Form EXP 1: General Construction Experience ..................................................................................... 58
Form EXP 2(a): Specific Construction Experience ................................................................................. 59
Form EXP - 2(b): Specific Construction Experience in Key Activities ........................................................ 60
42
Letter of Bid
The Bidder must accomplish the Letter of Bid in its letterhead clearly showing the Bidders complete name and address.
Date: ..................................................
Name of the contract: ..................................................
Invitation for Bid No.: ..................................................
To: .............................................................................................................................................................
We, the undersigned, declare that:
(a) We have examined and have no reservations to the Bidding Documents, including Addenda
issued in accordance with Instructions to Bidders (ITB) Clause 8;
(b) We offer to execute in conformity with the Bidding Documents the following Works:
.........................................................................................................................................................
(c) The total price of our Bid, excluding any discounts offered in item (d) below is:
.........................................................................................................................................................
(d) The discounts offered and the methodology for their application are:
(e) Our bid shall be valid for a period of . . . .insert validity period as specified in ITB 18.1. . .
days from the date fixed for the bid submission deadline in accordance with the Bidding
Documents, and it shall remain binding upon us and may be accepted at any time before the
expiration of that period;
(f) If our bid is accepted, we commit to obtain a performance security in accordance with the
Bidding Document;
(g) Our firm, including any subcontractors or suppliers for any part of the Contract, have
nationalities from eligible countries or any countries [insert the nationality of the Bidder,
including that of all parties that comprise the Bidder if the Bidder is a consortium or
association, and the nationality of each Subcontractor and Supplier];
(h) We, including any subcontractors or suppliers for any part of the contract, do not have any
conflict of interest in accordance with ITB 4.3;
(i) We are not participating, as a Bidder or as a subcontractor, in more than one bid in this bidding
process in accordance with ITB 4.3, other than alternative offers submitted in accordance with
ITB 13;
43
(j) Our firm, its affiliates or subsidiaries, including any Subcontractors or Suppliers for any part of
the contract, has not been declared ineligible, under the Employers country laws or official
regulations or by an act of compliance with a decision of the United Nations Security Council;
(k) We are not a government owned entity / We are a government owned entity but meet the
requirements of ITB 4.5;1
(l) We understand that this bid, together with your written acceptance thereof included in your
notification of award, shall constitute a binding contract between us, until a formal contract is
prepared and executed;
(m) We declare that, we have no conflict of interest in the proposed procurement proceedings and
we have not been punished for an offense relating to the concerned profession or business.
(n) We understand that you are not bound to accept the lowest evaluated bid or any other bid that
you may receive; and
(o) If awarded the contract, the person named below shall act as Contractors Representative:
________________________________________________________________________
(p) We agree to permit the Employer or its representative to inspect our accounts and records and
other documents relating to the bid submission and to have them audited by auditors appointed
by the Employer.
Name .......................................................................................................................................................
In the capacity of .....................................................................................................................................
Signed .....................................................................................................................................................
Duly authorized to sign the Bid for and on behalf of ...............................................................................
Date .........................................................................................................................................................
1 Use one of the two options as appropriate.

44
Table of Price Adjustment Data
Employers Bidder's
Index Index Source of Base Value Proposed Proposed
Weighting
Code Description Index * and Date Weighting Range
(coefficient) (coefficient) **
1 2 3 4 5 6
Non-adjustable 0.15 - 0.20

(A)
Labor (b)
Materials (c)
Equipment
usage (d)
Total 1.00
* Normally following source of index shall apply:
(b) Labor: "National Salary and Wage Rate Index"- "Construction Labor" of Nepal Rastra Bank
(c) Material:"National Wholesale Price Index" - Construction Materials" of Nepal Rastra Bank
(d) Equipment usage: Public Entity shall choose one of the following Index as per the nature of
the Construction Work and equipments to be used:
"National Wholesale Price Index" - "Transport Vehicles and Machinery

Goods" of Nepal Rastra Bank or
"Fuel" Price fixed by Nepal Oil Corporation.
** Bidders proposed weightings should be within the range specified by the Employer in column
5.
45
Bid Security
Bank Guarantee
Banks Name, and Address of Issuing Branch or Office
(On Letter head of the 'A' class Commercial Bank)
Ben`eficiary: ............................... name and address of Employer ..........................................

Date: ................................................................................................................................................................................................................
Bid Security No.: ...................................................................................................................................................................................
We have been informed that . . . . . name of the Bidder. . . . . (hereinafter called the Bidder) has
submitted to you its bid dated . . . . . . . . . (hereinafter called the Bid) for the execution of . . . . . . . .
name of Contract . . . . . . . under Invitation for Bids No. . . . . . . . . . (the IFB).
Furthermore, we understand that, according to your conditions, bids must be supported by a bid
guarantee.
At the request of the Bidder, we . . . . . name of Bank. . . . . hereby irrevocably undertake to pay you
any sum or sums not exceeding in total an amount of . . . . . . . . . .amount in figures . . . . . . . . . (. . . . . .
.amount in words . . . . . . . ) upon receipt by us of your first demand in writing accompanied by a written
statement stating that the Bidder is in breach of its obligation(s) under the bid conditions, because the
Bidder:
(a) has withdrawn its Bid during the period of bid validity specified by the Bidder in the Form of Bid;
or
(b) does not accept the correction of errors in accordance with the Instructions to Bidders
(hereinafter the ITB); or
(c) having been notified of the acceptance of its Bid by the Employer during the period of bid
validity, (i) fails or refuses to execute the Contract Agreement, or (ii) fails or refuses to furnish
the performance security, in accordance with the ITB.
This guarantee will remain in force up to and including the date number days after the
deadline for submission of Bids as such deadline is stated in the instructions to Bidders or as it may
be extended by the Employer, notice of which extension(s) to the Bank is hereby waived. Any
demand in respect of this guarantee should reach the Bank not letter than the above date.
This Bank guarantee shall not be withdrawn or released merely upon return of the original gurantee
by the Bidder unless notified by you for the release of the guarantee.
This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 458.
. . . . . . . . . . . .Banks seal and authorized signature(s) . . . . . . . . . .
Note:
The bid security of ... has been counter guaranteed by the Bank ..
on ... (Applicable for Bid Security of Foreign Banks).
46
Technical Proposal Format
Personnel
Equipment
Site Organization
Method Statement
Mobilization Schedule
Construction Schedule
Others
47
Personnel
Form PER 1: Proposed Personnel

Bidders should provide the names of suitably qualified personnel to meet the specified requirements for
each of the positions listed in Section 3 (Evaluation and Qualification Criteria). The data on their
experience should be supplied using the Form below for each candidate.
1. Title of position
Name
2. Title of position*
Name
Name
Name
Name
*As listed in Section 3 (Evaluation and Qualification Criteria).
48
Form PER 2: Resume of Proposed Personnel
The Bidder shall provide all the information requested below. Fields with asterisk (*) shall be used for
evaluation.
Position*
Personnel Name Date of birth

information
Professional qualifications
Present Name of employer

employment
Address of employer
Telephone Contact (manager / personnel officer)
Fax E-mail
Job title Years with present employer
Summarize professional experience over the last twenty years in reverse chronological order. Indicate
particular technical and managerial experience relevant to the project.
From* To* Company, Project, Position and Relevant Technical and Management
Experience*
49
Equipment
The Bidder shall provide adequate information to demonstrate clearly that it has the capability to meet the
requirements for the key equipment listed in Section 3 (Evaluation and Qualification Criteria). A separate
Form shall be prepared for each item of equipment listed, or for alternative equipment proposed by the
Bidder. The Bidder shall provide all the information requested below, to the extent possible. Fields with
asterisk (*) shall be used for evaluation.
Type of Equipment*
Equipment Name of manufacturer Model and power rating

Information
Capacity* Year of manufacture
Current Current location

Status
Details of current commitments
Source Indicate source of the equipment
Owned Rented Leased Specially manufactured
The following information shall be provided only for equipment not owned by the Bidder.
Owner Name of owner
Address of owner
Telephone Contact name and title
Fax Telex
Agreements Details of rental / lease / manufacture agreements specific to the project
50
Site Organization
Method Statement
Mobilization Schedule
Construction Schedule
Others
51
Bidders Qualification
To establish its qualifications to perform the contract in accordance with Section 3 (Evaluation and
Qualification Criteria) the Bidder shall provide the information requested in the corresponding
Information Sheets included hereunder.
Form ELI 1: Bidders Information Sheet
Bidders Information
Bidders legal name
In case of JV, legal name of

each partner
Bidders country of
constitution
Bidders year of
constitution
Bidders legal address in

country of constitution
Bidders authorized
representative
(name, address, telephone
numbers, fax numbers, e-mail
address)
Attached are copies of the following original documents.
1. In case of single entity, articles of incorporation or constitution of the legal entity named above, in accordance with
ITB 4.1 and 4.2.
2. Authorization to represent the firm or JV named in above, in accordance with ITB 20.2.
3. In case of JV, letter of intent to form JV or JV agreement, in accordance with ITB 4.1.
4. In case of a government-owned entity, any additional documents not covered under 1 above required to comply with
ITB 4.5.
52
Form ELI - 2: JV Information Sheet
Each member of a JV must fill in this form
JV / Specialist Subcontractor Information
Bidders legal name
JV Partners or
Subcontractors legal
name
JV Partners or
Subcontractors country of
constitution
JV Partners or
Subcontractors year of
constitution
JV Partners or
Subcontractors legal
address in country of
constitution
JV Partners or
Subcontractors authorized
representative information
(name, address, telephone
numbers, fax numbers, e-mail
address)
Attached are copies of the following original documents.

1. Articles of incorporation or constitution of the legal entity named above, in accordance with ITB 4.1 and 4.2.
2. Authorization to represent the firm named above, in accordance with ITB 20.2.
3. In the case of government-owned entity, documents establishing legal and financial autonomy and compliance with
commercial law, in accordance with ITB 4.5.
53
Form LIT - 1: Pending Litigation
Each Bidder or member of a JV must fill in this form
Pending Litigation
No pending litigation in accordance with Criteria 2.2 of Section 3 (Evaluation and Qualification Criteria)
Pending litigation in accordance with Criteria 2.2 of Section 3 (Evaluation and Qualification Criteria)
Value of
Value of Pending
Year Matter in Dispute Pending Claim as a
Claim in NRS Percentage of
Net Worth
54
Form FIN - 1: Financial Situation
Each Applicant or member of a JV must fill in this form

Financial Data for Previous 3 Years [in NRS]
Year 1: Year 2: Year 3:
Information from Balance Sheet
Total Assets
Total Liabilities
Net Worth
Current Assets
Current Liabilities
Information from Income Statement
Total Revenues
Profits Before Taxes
Profits After Taxes
Attached are copies of financial statements (balance sheets including all related notes, and income
statements) for the last three or above years, as indicated above, complying with the following
conditions.
All such documents reflect the financial situation of the Applicant or partner to a JV, and not sister or
parent companies.
Historic financial statements must be audited by a certified accountant.
Historic financial statements must be complete, including all notes to the financial statements.
Historic financial statements must correspond to accounting periods already completed and audited
(no statements for partial periods shall be requested or accepted).
55
Form FIN - 2: Average Annual Construction Turnover
The information supplied should be the Annual Turnover of the Bidder or each member of a JV in terms
of the amounts billed to clients for each year for work in progress or completed to NRS at the end of the
period reported.
Annual Turnover Data for the Last 10 Years

(Construction only)
Amount
Year
Currency
.-Average Annual Construction Turnover
56
Form FIN 3: Financial Resources
Specify proposed sources of financing, such as liquid assets, unencumbered real assets, lines of credit,
and other financial means, net of current commitments, available to meet the total construction cash flow
demands of the subject contract or contracts as indicated in Section 3 (Evaluation and Qualification
Criteria)
Financial Resources
No. Source of financing Amount (in NRS)
Note:
The letter from the Bank must be unconditional.
Form FIN- 4: Current Contract Commitments / Works in Progress
Bidders and each partner to a JV should provide information on their current commitments on all contracts
that have been awarded, or for which a letter of intent or acceptance has been received, or for contracts
approaching completion, but for which an unqualified, full completion certificate has yet to be issued.
Current Contract Commitments

Name of Contract
Address, Tel, Fax
Contract Duration
outstanding work
Contract Amount
Average Monthly
Completion Date
Contract Date
[NRS/month)]
Name of the
Contractor/s
Employer's
Estimated
Invoicing
Contract
Value of
[NRS]
No.
1.
2.
3.
4.
5.
6.
57
Form EXP 1: General Construction Experience
General Construction Experience
Starting Ending Contract Identification and Name
Month Month Years Name and Address of Employer Role of Bidder
Year Year Brief Description of the Works Executed by the Bidder
58
Form EXP 2(a): Specific Construction Experience
Fill up one (1) form per contract.
Contract of Similar Size and Nature
Contract No . . . . . . of . . . . . Contract Identification
Award Date Completion Date
Role in Contract Contractor

Management
Subcontractor
Contractor
Total Contract Amount NRS ..
If partner in a JV or
subcontractor, specify
Percent of Total Amount
participation of total
contract amount
Employers Name
Address
Telephone/Fax Number
E-mail
Description of the similarity in accordance with Criteria 2.4.2(a) of Section 3
Note:
The Employer should
insert here contract
size, complexity,
methods, technology,
or other
characteristics as
described in Section 5
(Employer's
Requirements)
against which the
bidder demonstrates
similarity in the box on
the right-hand-side.
59
Form EXP - 2(b): Specific Construction Experience in Key Activities
Fill up one (1) form per contract
Contract with Similar Key Activities
Contract No . . . . . . of . . . . . Contract Identification
Award Date Completion Date
Role in Contract Contractor

Management
Subcontractor
Contractor
Total Contract Amount NRS .
If partner in a JV or
subcontractor, specify
Percent of Total Amount
participation of total
contract amount
Employers Name
Address
Telephone Number
Fax Number
E-mail
Description of the key activities in accordance with Criteria 2.4.2(b) of Section 3
Note:
The Employer should
insert here production
rate(s) for the key
activity (activities)
subject contract
against which the
bidder demonstrates
in the box on the right-
hand-side production
rates achieved by him
on previous contracts.
60
PART II: REQUIREMENTS
Section 5 - Works Requirements
This Section contains the Specification, the Drawings, and supplementary information that describe the
Works to be procured.
Table of Contents
Scope of Work ................................................................................................................................................ 62
Specifications ................................................................................................................................................. 63
Drawings.......................................................................................................................................................... 65
Supplementary Information ........................................................................................................................... 66
61
Scope of Work
[insert brief scope of works.]
62
Specifications
Notes on the Specifications
A set of precise and clear specifications is a prerequisite for Bidders to respond realistically and competitively
to the requirements of the Employer without qualifying or conditioning their Bids. The specifications must be
drafted to permit the widest possible competition and, at the same time, present a clear statement of the
required standards of workmanship, materials, and performance of the goods and services to be procured.
Only if this is done will the objectives of economy, efficiency and fairness in procurement be realized,
responsiveness of Bids be ensured, and the subsequent task of bid evaluation facilitated. The specifications
should require that all goods and materials to be incorporated in the Works be new, unused, of the most
recent or current models, and incorporate all recent improvements in design and materials unless provided
otherwise in the Contract.
Samples of specifications from previous similar projects are useful in this respect. The use of metric units is
encouraged by the Funding Agency in case of Funding assisted projects. Most specifications are normally
written specially by the Employer or Project Manager to suit the Contract Works in hand. The available
standard specification of works of Ministry of Physical Planning and Works, DoLIDAR and Other line
Ministries can be adopted for respective civil construction works.
There are considerable advantages in standardizing General Specifications for repetitive Works in
recognized public sectors, such as highways, urban housing, irrigation, and water supply, in the same
country or region where similar conditions prevail. The General Specifications should cover all classes of
workmanship, materials, and equipment commonly involved in construction, although not necessarily to be
used in a particular Works Contract. Deletions or addenda should then adapt the General Specifications to
the particular Works.
Care must be taken in drafting specifications to ensure that they are not restrictive. In the specification of
standards for goods, materials, and workmanship, recognized international standards should be used as
much as possible. Where other particular standards are used, whether national standards of Nepal or other
standards, the specifications should state that goods, materials, and workmanship that meet other
authoritative standards, and which ensure substantially equal or higher quality than the standards mentioned,
will also be acceptable. The following clause may be inserted in the Special Conditions or Specifications.
Employers should decide whether technical solutions to specified parts of the Works are to be
permitted. Alternatives are appropriate in cases where obvious (and potentially less costly)
alternatives are possible to the technical solutions indicated in the Procurement Documents for certain
elements of the Works, taking into consideration the comparative specialized advantage of potential
bidders. For example:
63
The Employer should provide a description of the selected parts of the Works with appropriate
references to Drawings, Specifications, Bill of Quantities, and Design or Performance criteria, stating
that the alternative solutions shall be at least structurally and functionally equivalent to the basic design
parameters and specifications.
Such alternative solutions shall be accompanied by all information necessary for a complete
evaluation by the Employer, including drawings, design calculations, technical specifications,
breakdown of prices, proposed construction methodology, and other relevant details.
Sample Clause: Equivalency of Standards and Codes
Wherever reference is made in the Contract to specific standards and codes to be met by the goods
and materials to be furnished, and work performed or tested, the provisions of the latest current edition
or revision of the relevant standards and codes in effect shall apply, unless otherwise expressly stated
in the Contract. Where such standards and codes are national, or relate to a particular country or
region, other authoritative standards that ensure a substantially equal or higher quality than the
standards and codes specified will be accepted subject to the Project Managers prior review and
written consent. Differences between the standards specified and the proposed alternative standards
shall be fully described in writing by the Contractor and submitted to the Project Manager at least 30
days prior to the date when the Contractor desires the Project Managers consent. In the event the
Project Manager determines that such proposed deviations do not ensure substantially equal or higher
quality, the Contractor shall comply with the standards specified in the documents.
These Notes for Preparing Specifications are intended only as information for the Employer or the
person drafting the Procurement Documents. They should not be included in the final documents.
64
Drawings
Note:
1. It is customary to bind the drawings in a separate volume, which is often larger than other volumes of the
contract documents. The size will be dictated by the scale of the drawings, which must not be reduced to
the extent that details are reduced illegible.
2. A simplified map showing the location of the Site in relation to the local geography, indicating major
roads, posts, airports, and railroads, is helpful.
3. The construction drawings, even if not fully developed, must show sufficient details to enable bidders to
understand the type and complexity of the work involved and the price the Bill of Quantities.
65
Supplementary Information
[insert supplementary information if any]
Section 6 Preamble to the Bill of Quantities2

Notes on the Bill of Quantities for Unit Rate Contracts
General
1. The Bill of Quantities shall be read in conjunction with the Instructions to Bidders, General and
special Conditions of Contract, Technical Specifications, and Drawings.
2. The quantities given in the Bill of Quantities are estimated and provisional, and are given to
provide a common basis for bidding. The basis of payment will be the actual quantities of work
ordered and carried out, as measured by the Contractor and verified by the Engineer and valued at
the rates and prices bid in the priced Bill of Quantities, where applicable, and otherwise at such
rates and prices as the Engineer may fix within the terms of the Contract.
3. The rates and prices bid in the priced Bill of Quantities shall, except as otherwise provided under
the Contract, include all construction equipment, labor, supervision, materials, erection,
maintenance, insurance, profit, taxes, and duties, together with all general risks, liabilities, and
obligations set out or implied in the Contract.
4. A rate or price shall be entered against each item in the priced Bill of Quantities, whether quantities
are stated or not. The cost of items against which the Contractor has failed to enter a rate or price
shall be deemed to be covered by other rates and prices entered in the Bill of Quantities.
5. The whole cost of complying with the provisions of the Contract shall be included in the Items
provided in the priced Bill of Quantities, and where no Items are provided, the cos t shall be
deemed to be distributed among the rates and prices entered for the related Items of Work.
6. General directions and descriptions of work and materials are not. necessarily repeated nor
summarized in the Bill of Quantities. References to the relevant sections of the Contract
documentation shall be made before entering prices against each item in the priced Bill of
Quantities.
2 In lump sum contracts, delete Bill of Quantities and replace with Schedule of Activities throughout this section.
66
7. Provisional Sums included and so designated in the Bill of Quantities shall be expended in whole
or in part at the direction and discretion of the Engineer in accordance with the Conditions of
Contract.
8. The method of measurement of completed work for payment shall be in accordance with [Insert
the name of a standard reference guide, or specification to be used].
Objectives
The objectives of the Bill of Quantities are
a) to provide sufficient information on the quantities of Works to be performed to enable Bids to be

prepared efficiently and accurately; and
b) when a Contract has been entered into, to provide a priced Bill of Quantities for use in the periodic
valuation of Works executed.
In order to attain these objectives, Works should be itemized in the Bill of Quantities in sufficient detail to
distinguish between the different classes of Works, or between Works of the same nature carried out in
different locations or in other circumstances which may give rise to different considerations of cost.
Consistent with these requirements, the layout and content of the Bill of Quantities should be as simple and
brief as possible.
Day work Schedule
A Day work Schedule should be included only if the probability of unforeseen work, outside the items
included in the Bill of Quantities, is high. To facilitate checking by the Employer of the realism of rates quoted
by the Bidders, the Day work Schedule should normally comprise the following:
a) A list of the various classes of labor, materials, and equipment for which basic Day work rates or
prices are to be inserted by the Bidder, together with a statement of the conditions under which the
Contractor will be paid for work executed on a day work basis.
b) Nominal quantities for each item of Day work, to be priced by each Bidder at Day work rates as bid.
The rate to be entered by the Bidder against each basic Day work item should include the
Contractors profit, overheads, supervision, and other charges.
c) The total amount assigned to such competitive Day work is normally 3-5 percent of the estimated
base contract price and is regarded as a Provisional Sum for contingencies to be expended under
the direction and at the discretion of the Engineer. A limitation on quantity should not apply, and the
unit rate quoted should be invariable whatever quantities of work are ordered.
Provisional Sums
A general provision for physical contingencies (quantity overruns) may be made by including a provisional
sum in the Summary Bill of Quantities. Similarly, a contingency allowance for possible price increases should
be provided as a provisional sum in the Summary Bill of Quantities. The inclusion of such provisional sums
often facilitates budgetary approval by avoiding the need to request periodic supplementary approvals as the
future need arises. Where such provisional sums or contingency allowances are used, the SCC should state
the manner in which they will be used, and under whose authority (usually the Project Managers).
67
The estimated cost of specialized work to be carried out, or of special goods to be supplied, by other
contractors should be indicated in the relevant part of the Bill of Quantities as a particular provisional sum
with an appropriate brief description. A separate procurement procedure is normally carried out by the
Employer to select such specialized contractors. To provide an element of competition among the Bidders in
respect of any facilities, amenities, attendance, etc., to be provided by the successful Bidder as prime
Contractor for the use and convenience of the specialist contractors, each related provisional sum should be
followed by an item in the Bill of Quantities inviting the Bidder to quote a sum for such amenities, facilities,
attendance, etc.
68
PART III: CONDITIONS OF CONTRACT AND
CONTRACT FORMS
Section 7 - General Conditions of Contract
_______________________________
[Name of Employer]
_______________________________
[Name of Contract]
69
Table of Clauses
A. General ...................................................................................................................................................... 72
1. Definitions........................................................................................................................ 72
2. Interpretation ................................................................................................................... 74
3. Language and Law .......................................................................................................... 74
4. Project Managers Decisions .......................................................................................... 74
5. Delegation ........................................................................................................................ 75
6. Communications ............................................................................................................. 75
7. Subcontracting ................................................................................................................ 75
8. Other Contractors ........................................................................................................... 75
9. Personnel and Equipment .............................................................................................. 75
10. Employers and Contractors Risks ............................................................................... 75
11. Employers Risks ............................................................................................................ 75
12. Contractors Risks .......................................................................................................... 76
13. Insurance ......................................................................................................................... 76
14. Site Investigation Reports .............................................................................................. 76
15. Contractor to Construct the Works ................................................................................ 76
16. The Works to Be Completed within Completion Date ................................................... 76
17. Approval by the Project Manager ................................................................................... 77
18. Safety ............................................................................................................................... 77
19. Discoveries ...................................................................................................................... 77
20. Possession of the Site .................................................................................................... 77
21. Access to the Site ........................................................................................................... 77
22. Instructions, Inspections and Audits ............................................................................. 77
23. Dispute Settlement .......................................................................................................... 77
24. Appointment of the Adjudicator/ DRC Members ........................................................... 77
25 Procedures for Disputes ................................................................................................. 78
B. Time Control ............................................................................................................................................. 78
26. Program ........................................................................................................................... 78

27. Extension of the Intended Completion Date .................................................................. 78
28. Acceleration..................................................................................................................... 79
29. Delays Ordered by the Project Manager ........................................................................ 79
30. Management Meetings .................................................................................................... 79
31. Early Warning .................................................................................................................. 79
C. Quality Control ......................................................................................................................................... 79
32. Identifying Defects .......................................................................................................... 79

33. Tests ................................................................................................................................ 80
34. Correction of Defects ...................................................................................................... 80
70
35. Uncorrected Defects ....................................................................................................... 80
D. Cost Control .............................................................................................................................................. 80
36. Contract Price ................................................................................................................. 80

37. Changes in the Contract Price ....................................................................................... 80
38. Variations......................................................................................................................... 81
39. Cash Flow Forecasts ...................................................................................................... 81
40. Payment Certificates ....................................................................................................... 81
41. Payments ......................................................................................................................... 82
42. Compensation Events..................................................................................................... 82
43. Tax ............................................................................................................................... 83
44. Currency .......................................................................................................................... 83
45. Price Adjustment............................................................................................................. 83
46. Retention ......................................................................................................................... 86
47. Liquidated Damages ....................................................................................................... 86
48. Bonus............................................................................................................................... 86
49. Advance Payment ........................................................................................................... 86
50. Securities ......................................................................................................................... 87
51. Dayworks ......................................................................................................................... 87
52. Cost of Repairs................................................................................................................ 87
E. Finishing the Contract .............................................................................................................................. 87
53. Completion ...................................................................................................................... 87

54. Taking Over ..................................................................................................................... 87
55. Final Account .................................................................................................................. 87
56. Operating and Maintenance Manuals ............................................................................ 87
57. Termination ..................................................................................................................... 88
58. Fraud and Corruption ..................................................................................................... 88
59. Black Listing.................................................................................................................... 90
60. Instructions, Inspections and Audits ............................................................................. 90
61. Payment upon Termination ............................................................................................ 90
62. Property ........................................................................................................................... 90
63. Release from Performance ............................................................................................. 90
71
General Conditions of Contract
A. General
1. Definitions 1.1 Boldface type is used to identify defined terms.

(a) The Accepted Contract Amount means the amount accepted
in the Letter of Acceptance for the execution and completion of
the Works and the remedying of any defects.
(b) The Activity Schedule is a schedule of the activities
comprising the construction, installation, testing, and
commissioning of the Works in a lump sum contract. It includes
a lump sum price for each activity, which is used for valuations
and for assessing the effects of Variations and Compensation
Events.
(c) The Adjudicator is the person appointed jointly by the
Employer and the Contractor to resolve disputes in the first
instance, as provided for in GCC 23.2 hereunder.
(d) Bill of Quantities means the priced and completed Bill of
Quantities forming part of the Bid.
(e) Compensation Events are those defined in GCC 42
hereunder.
(f) The Completion Date is the date of completion of the Works
as certified by the Project Manager, in accordance with GCC
53.1.
(g) The Contract is the Contract between the Employer and the
Contractor to execute, complete, and maintain the Works. It
consists of the documents listed in GCC 2.3 below.
(h) The Contractor is the party whose Bid to carry out the Works
has been accepted by the Employer.
(i) The Contractors Bid is the completed bidding document
submitted by the Contractor to the Employer.
(j) The Contract Price is the Accepted Contract Amount stated in
the Letter of Acceptance and thereafter as adjusted in
accordance with the Contract.
(k) Days are calendar days; months are calendar months.
(l) Day works are varied work inputs subject to payment on a
time basis for the Contractors employees and Equipment, in
addition to payments for associated Materials and Plant.
(m) A Defect is any part of the Works not completed in accordance
with the Contract.
(n) The Defects Liability Certificate is the certificate issued by
Project Manager upon correction of defects by the Contractor.
(o) The Defects Liability Period is the period calculated from the
Completion Date where the Contractor remains responsible for
remedying defects.
(p) Drawings include calculations and other information provided
72
or approved by the Project Manager for the execution of the
Contract.
(q) The Employer is the party who employs the Contractor to
carry out the Works, as specified in the SCC.
(r) Equipment is the Contractors machinery and vehicles
brought temporarily to the Site to construct the Works.
(s) Force Majeure means an exceptional event or circumstance:
which is beyond a Party's control; which such Party could not
reasonably have provided against before entering into the
Contract; which, having arisen, such Party could not
reasonably have avoided or overcome; and, which is not
substantially attributable to the other Party.
(t) The Initial Contract Price is the Contract Price listed in the
Employers Letter of Acceptance.
(u) The Intended Completion Date is the date on which it is
intended that the Contractor shall complete the Works. The
Intended Completion Date is specified in the SCC. The
Intended Completion Date may be revised only by the Project
Manager by issuing an extension of time or an acceleration
order.
(v) Letter of Intent is the letter of the Employer expressing his
intention to award the contract.
(w) Letter of Acceptance means the formal acceptance by the
Employer of the Bid and denotes the formation of the contract
at the date of acceptance.
(x) Materials are all supplies, including consumables, used by the
Contractor for incorporation in the Works.
(y) Party means the Employer or the Contractor, as the context
requires.
(z) SCC means Special Conditions of Contract
(aa) Plant is any integral part of the Works that shall have a
mechanical, electrical, chemical, or biological function.
(bb) The Project Manager is the person named in the SCC (or any
other competent person appointed by the Employer and
notified to the Contractor, to act in replacement of the Project
Manager) who is responsible for supervising the execution of
the Works and administering the Contract.
(cc) Retention Money means the aggregate of all monies retained
by the Employer pursuant to GCC 46.1.
(dd) The Site is the area defined as such in the SCC.
(ee) Site Investigation Reports are those that were included in
the bidding documents and are factual and interpretative
reports about the surface and subsurface conditions at the
Site.
(ff) Specification means the Specification of the Works included
in the Contract and any modification or addition made or
73
approved by the Project Manager.
(gg) The Start Date is given in the SCC. It is the latest date when
the Contractor shall commence execution of the Works. It
does not necessarily coincide with any of the Site Possession
Dates.
(hh) A Subcontractor is a person or corporate body who has a
Contract with the Contractor to carry out a part of the work in
the Contract, which includes work on the Site.
(ii) Temporary Works are works designed, constructed, installed,
and removed by the Contractor that are needed for
construction or installation of the Works.
(jj) A Variation is an instruction given by the Project Manager
which varies the Works.
(kk) The Works are what the Contract requires the Contractor to
construct, install, and turn over to the Employer, as defined in
the SCC.
2. Interpretation 2.1 In interpreting these GCC, singular also means plural, male also
means female or neuter, and the other way around. Headings have no
significance. Words have their normal meaning under the language of
the Contract unless specifically defined. The Project Manager shall
provide instructions clarifying queries about these GCC.
2.2 If sectional completion is specified in the SCC, references in the GCC

to the Works, the Completion Date, and the Intended Completion Date
apply to any Section of the Works (other than references to the
Completion Date and Intended Completion Date for the whole of the
Works).
2.3 The documents forming the Contract shall be interpreted in the

following order of priority:
(a) This Contract Agreement,
(b) Letter of Acceptance,
(c) Contractors Bid,
(d) Special Conditions of Contract,
(e) General Conditions of Contract,
(f) Specifications,
(g) Drawings,
(h) Bill of Quantities (or Schedules of Prices for lump sum
contracts), and
(i) Any other document listed in the SCC as forming part of the
Contract.
3. Language and 3.1 The language of the Contract and the law governing the Contract are
Law stated in the SCC.
4. Project 4.1 Except where otherwise specifically stated, the Project Manager shall
Managers decide contractual matters between the Employer and the Contractor
74
Decisions in the role representing the Employer.
5. Delegation 5.1 The Project Manager may delegate any of his duties and responsibilities
to other people, except to the Adjudicator, after notifying the Contractor,
and may cancel any delegation after notifying the Contractor.
6. Communica- 6.1 Communications between parties that are referred to in the Conditions
tions shall be effective only when in writing. A notice shall be effective only
when it is delivered.
7. Subcontracting 7.1 The Contractor may subcontract with the approval of the Project
Manager, but may not assign the Contract without the approval of the
Employer in writing. Subcontracting shall not alter the Contractors
obligations.
8. Other 8.1 The Contractor shall cooperate and share the Site with other
Contractors contractors, public authorities, utilities, and the Employer between the
dates given in the Schedule of Other Contractors, as referred to in the
SCC. The Contractor shall also provide facilities and services for them
as described in the Schedule. The Employer may modify the Schedule
of Other Contractors, and shall notify the Contractor of any such
modification.
9. Personnel and 9.1 The Contractor shall employ the key personnel and use the equipment
Equipment identified in its Bid to carry out the Works, or other personnel and
equipment approved by the Project Manager. The Project Manager
shall approve any proposed replacement of key personnel and
equipment only if their relevant qualifications or characteristics are
substantially equal to or better than those proposed in the Bid.
9.2 If the Project Manager asks the Contractor to remove a person who is a
member of the Contractors staff or work force, stating the reasons, the
Contractor shall ensure that the person leaves the Site within seven
days and has no further connection with the work in the Contract.
10. Employers and 10.1 The Employer carries the risks which this Contract states are
Contractors Employers risks, and the Contractor carries the risks which this
Risks Contract states are Contractors risks.
11. Employers 11.1 From the Start Date until the Defects Liability Certificate has been
Risks issued, the following are Employers risks:
(a) The risk of personal injury, death, or loss of or damage to
property (excluding the Works, Plant, Materials, and Equipment),
which are due to
(i) use or occupation of the Site by the Works or for the
purpose of the Works, which is the unavoidable result of
the Works or
(ii) negligence, breach of statutory duty, or interference with
any legal right by the Employer or by any person employed
by or contracted to him except the Contractor.
(b) The risk of damage to the Works, Plant, Materials, and
Equipment to the extent that it is due to a fault of the Employer or
in the Employers design, or due to war or radioactive
contamination directly affecting the country where the Works are
75
to be executed.
11.2 From the Completion Date until the Defects Liability Certificate has
been issued, the risk of loss of or damage to the Works, Plant, and
Materials is an Employers risk except loss or damage due to
(a) a Defect which existed on the Completion Date,
(b) an event occurring before the Completion Date, which was not
itself an Employers risk, or
(c) the activities of the Contractor on the Site after the Completion
Date.
12. Contractors 12.1 From the Starting Date until the Defects Liability Certificate has been
Risks issued, the risks of personal injury, death, and loss of or damage to
property (including, without limitation, the Works, Plant, Materials, and
Equipment) which are not Employers risks are Contractors risks.
13. Insurance 13.1 The Contractor shall provide, in the joint names of the Employer and
the Contractor, insurance cover from the Start Date to the end of the
Defects Liability Period, in the amounts and deductibles stated in the
SCC for the following events which are due to the Contractors risks:
(a) loss of or damage to the Works, Plant, and Materials;
(b) loss of or damage to Equipment;
(c) loss of or damage to property (except the Works, Plant,
Materials, and Equipment) in connection with the Contract; and
(d) personal injury or death.
13.2 Policies and certificates for insurance shall be delivered by the

Contractor to the Project Manager for the Project Managers approval
before the Start Date. All such insurance shall provide for
compensation to be payable in the proportions of Nepalese Rupees
required to rectify the loss or damage incurred.
13.3 If the Contractor does not provide any of the policies and certificates
required, the Employer may effect the insurance which the Contractor
should have provided and recover the premiums the Employer has
paid from payments otherwise due to the Contractor or, if no payment
is due, the payment of the premiums shall be a debt due.
13.4 Alterations to the terms of an insurance shall not be made without the
approval of the Project Manager.
13.5 Both parties shall comply with any conditions of the insurance policies.
14. Site 14.1 The Contractor, in preparing the Bid, shall rely on any Site
Investigation Investigation Reports referred to in the SCC, supplemented by any
Reports information available to the Bidder.
15. Contractor to 15.1 The Contractor shall construct and install the Works in accordance with
Construct the the Specifications and Drawings.
Works
16. The Works to Be 16.1 The Contractor may commence execution of the Works on the Start
Completed Date and shall carry out the Works in accordance with the Program
within submitted by the Contractor, as updated with the approval of the
76
Completion Project Manager, and complete them within the Completion Date
Date specified in the SCC.
17. Approval by the 17.1 The Contractor shall submit Specifications and Drawings showing the
Project Manager proposed Temporary Works to the Project Manager, for his approval.
17.2 The project Managers approval shall not alter the Contractors
responsibility for design of temporary works.
18. Safety 18.1 The Contractor shall be responsible for the safety of all activities on the
Site.
19. Discoveries 19.1 Anything of historical or other interest or of significant value

unexpectedly discovered on the Site shall be the property of the
Employer. The Contractor shall notify the Project Manager of such
discoveries and carry out the Project Managers instructions for dealing
with them.
20. Possession of 20.1 The Employer shall give possession of all parts of the Site to the
the Site Contractor. If possession of a part is not given by the date stated in
the SCC, the Employer shall be deemed to have delayed the start of
the relevant activities, and this shall be a Compensation Event.
21. Access to the 21.1 The Contractor shall allow the Project Manager and any person
Site authorized by the Project Manager access to the Site and to any place
where work in connection with the Contract is being carried out or is
intended to be carried out.
22. Instructions, 22.1 The Contractor shall carry out all instructions of the Project Manager
Inspections and which comply with the applicable laws where the Site is located.
Audits
22.2 The Contractor shall permit the GoN/DP and/or persons appointed by
the GoN/DP to inspect the Site and/or the accounts and records of the
Contractor and its sub-contractors relating to the performance of the
Contract, and to have such accounts and records audited by auditors
appointed by the GoN/DP if required by the GoN/DP. The Contractors
attention is drawn to Sub-Clause 58.1 which provides, inter alia, that
acts intended to materially impede the exercise of the GoNs/DPs
inspection and audit rights provided for under this Sub-Clause
constitute a prohibited practice subject to contract termination.
23. Dispute 23.1 The Employer and the Contractor shall attempt to settle amicably by
Settlement direct negotiation any disagreement or dispute arising between them
under or in connection with the Contract.
23.2 Any dispute between the Parties as to matters arising pursuant to this
Contract which cannot be settled amicably within thirty (30) days after
receipt by one Party of the other Partys request for such amicable
settlement may be referred to the Adjudicator or Dispute Resolution
Committee (DRC) by either Party as specified in the SCC within 15
days after the expiration of amicable settlement period.
24. Appointment of 24.1 The Adjudicator if specified in the SCC shall be appointed by the
the Adjudicator/ consensus of the Client and the Contractor. If the parties cannot reach
DRC Members an agreement on the appointment of the Adjudicator, the Client will
request the Appointing Authority designated in the SCC, to appoint the
77
Adjudicator within 15 days of receipt of such request.
24.2 DRC shall be formed which comprise of three members. Each Party
shall appoint one member each and the third member who shall act as
the Chairman shall be appointed by the two members appointed by the
Parties.
25 Procedures for 25.1 If a dispute is referred to the Adjudicator or the DRC then the
Disputes Adjudicator or the DRC shall give a decision in writing within 30 days of
receipt of a reference of the dispute.
25.2 The Adjudicator or the DRC Members shall be paid by the hour at the
rate specified in the SCC, together with reimbursable expenses of the
types specified in the SCC, and the cost shall be divided equally
between the Client and the Contractor, whatever decision is reached
by the Adjudicator or DRC. Either party may refer a decision of the
Adjudicator or DRC to an Arbitrator within 30 days of the Adjudicators
or DRCs written decision. If neither party refers the dispute to
arbitration within the above 30 days, the Adjudicators or the DRCs
decision will be final and binding.
25.3 In case of arbitration, the arbitration shall be conducted in accordance
with the arbitration procedures published by the institution named and
at the place given in the SCC.
B. Time Control
26. Program 26.1 Within the time stated in the SCC, after the date of the Letter of
Acceptance, the Contractor shall submit to the Project Manager for
approval a Program showing the general methods, arrangements,
order, and timing for all the activities in the Works. In the case of a
lump sum contract, the activities in the Program shall be consistent
with those in the Activity Schedule.
26.2 An update of the Program shall be a program showing the actual

progress achieved on each activity and the effect of the progress
achieved on the timing of the remaining work, including any changes to
the sequence of the activities.
26.3 The Contractor shall submit to the Project Manager for approval an
updated Program at intervals no longer than the period stated in the
SCC. If the Contractor does not submit an updated Program within
this period, the Project Manager may withhold the amount stated in the
SCC from the next payment certificate and continue to withhold this
amount until the next payment after the date on which the overdue
Program has been submitted. In the case of a lump sum contract, the
Contractor shall provide an updated Activity Schedule within 15 days of
being instructed to by the Project Manager.
26.4 The Project Managers approval of the Program shall not alter the
Contractors obligations. The Contractor may revise the Program and
submit it to the Project Manager again at any time. A revised Program
shall show the effect of Variations and Compensation Events.
27. Extension of the 27.1 The Project Manager shall extend the Intended Completion Date if a
Intended Compensation Event occurs or a Variation is issued which makes it
Completion impossible for Completion to be achieved by the Intended Completion
Date Date without the Contractor taking steps to accelerate the remaining
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work, which would cause the Contractor to incur additional cost.
27.2 The Project Manager shall decide whether and by how much to extend
the Intended Completion Date within 21 days of the Contractor asking
the Project Manager for a decision upon the effect of a Compensation
Event or Variation and submitting full supporting information at least 7
days prior to the intended completion date. If the Contractor has failed
to give early warning of a delay or has failed to cooperate in dealing
with a delay, the delay by this failure shall not be considered in
assessing the new Intended Completion Date.
28. Acceleration 28.1 When the Employer wants the Contractor to finish before the Intended
Completion Date, the Project Manager shall obtain priced proposals for
achieving the necessary acceleration from the Contractor. If the
Employer accepts these proposals, the Intended Completion Date shall
be adjusted accordingly and confirmed by both the Employer and the
Contractor.
28.2 If the Contractors priced proposals for an acceleration are accepted by

the Employer, they are incorporated in the Contract Price and treated
as a Variation.
29. Delays Ordered 29.1 The Project Manager may instruct the Contractor to delay the start or
by the Project progress of any activity within the Works.
Manager
30. Management 30.1 Either the Project Manager or the Contractor may require the other to
Meetings attend a management meeting. The business of a management
meeting shall be to review the plans for remaining work and to deal
with matters raised in accordance with the early warning procedure.
30.2 The Project Manager shall record the business of management

meetings and provide copies of the record to those attending the
meeting and to the Employer. The responsibility of the parties for
actions to be taken shall be decided by the Project Manager either at
the management meeting or after the management meeting and stated
in writing to all who attended the meeting.
31. Early Warning 31.1 The Contractor shall warn the Project Manager at the earliest
opportunity of specific likely future events or circumstances that may
adversely affect the quality of the work, increase the Contract Price, or
delay the execution of the Works. The Project Manager may require
the Contractor to provide an estimate of the expected effect of the
future event or circumstance on the Contract Price and Completion
Date. The estimate shall be provided by the Contractor as soon as
reasonably possible.
31.2 The Contractor shall cooperate with the Project Manager in making
and considering proposals for how the effect of such an event or
circumstance can be avoided or reduced by anyone involved in the
work and in carrying out any resulting instruction of the Project
Manager.
C. Quality Control
32. Identifying 32.1 The Project Manager shall check the Contractors work and notify the
Defects Contractor of any Defects that are found. Such checking shall not
79
affect the Contractors responsibilities. The Project Manager may
instruct the Contractor to search for a Defect and to uncover and test
any work that the Project Manager considers may have a Defect.
33. Tests 33.1 If the Project Manager instructs the Contractor to carry out a test not
specified in the Specification to check whether any work has a Defect
and the test shows that it does, the Contractor shall pay for the test
and any samples. If there is no Defect, the test shall be a
Compensation Event.
34. Correction of 34.1 The Project Manager shall give notice to the Contractor of any Defects
Defects before the end of the Defects Liability Period, which begins at
Completion, and is defined in the SCC. The Defects Liability Period
shall be extended for as long as Defects remain to be corrected.
34.2 Every time notice of a Defect is given, the Contractor shall correct the
notified Defect within the length of time specified by the Project
Managers notice.
35. Uncorrected 35.1 If the Contractor has not corrected a Defect within the time specified in
Defects the Project Managers notice, the Project Manager shall assess the
cost of having the Defect corrected, and the Contractor shall pay this
amount.
D. Cost Control
36. Contract Price 36.1 In the case of an Unit Rate contract, the Bill of Quantities shall contain
priced items for the Works to be performed by the Contractor. The Bill
of Quantities is used to calculate the Contract Price. The Contractor
will be paid for the quantity of the work accomplished at the rate in the
Bill of Quantities for each item.
36.2 In the case of a lump sum contract, the Activity Schedule shall contain
the priced activities for the Works to be performed by the Contractor.
The Activity Schedule is used to monitor and control the performance
of activities on which basis the Contractor will be paid. If payment for
Materials on Site shall be made separately, the Contractor shall show
delivery of Materials to the Site separately on the Activity Schedule.
37. Changes in the 37.1 In the case of an Unit Rate contract:

Contract Price
(a) If the final quantity of the work done differs from the quantity in the
Bill of Quantities for the particular item by more than 25 percent,
provided the change exceeds 2 percent of the Initial Contract
Price, the Project Manager shall adjust the rate to allow for the
change.
(b) The Project Manager shall not adjust rates from changes in
quantities if thereby the Initial Contract Price is exceeded by more
than 15 percent, except with the prior approval of the Employer.
(c) If requested by the Project Manager, the Contractor shall provide
the Project Manager with a detailed cost breakdown of any rate in
the Bill of Quantities.
37.2 In the case of a lump sum contract, the Activity Schedule shall be
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amended by the Contractor to accommodate changes of Program or
method of working made at the Contractors own discretion. Prices in
the Activity Schedule shall not be altered when the Contractor makes
such changes to the Activity Schedule.
38. Variations 38.1 All Variations shall be included in updated Programs, and, in the case
of a lump sum contract, also in the Activity Schedule, produced by the
Contractor.
38.2 The Contractor shall provide the Project Manager with a quotation for
carrying out the Variation when requested to do so by the Project
Manager. The Project Manager shall assess the quotation, which shall
be given within seven (7) days of the request or within any longer period
stated by the Project Manager and before the Variation is ordered.
38.3 If the Contractors quotation is unreasonable, the Project Manager may

order the Variation and make a change to the Contract Price, which
shall be based on the Project Managers own forecast of the effects of
the Variation on the Contractors costs.
38.4 If the Project Manager decides that the urgency of varying the work
would prevent a quotation being given and considered without delaying
the work, no quotation shall be given and the Variation shall be treated
as a Compensation Event.
38.5 The Contractor shall not be entitled to additional payment for costs that
could have been avoided by giving early warning.
38.6 In the case of an Unit Rate contract, if the work in the Variation
corresponds to an item description in the Bill of Quantities and if, in the
opinion of the Project Manager, the quantity of work above the limit
stated in GCC 37.1 or the timing of its execution do not cause the cost
per unit of quantity to change, the rate in the Bill of Quantities shall be
used to calculate the value of the Variation. If the cost per unit of
quantity changes, or if the nature or timing of the work in the Variation
does not correspond with items in the Bill of Quantities, the quotation
by the Contractor shall be in the form of new rates for the relevant
items of work.
39. Cash Flow 39.1 When the Program, or, in the case of a lump sum contract, the Activity
Forecasts Schedule, is updated, the Contractor shall provide the Project Manager
with an updated cash flow forecast. The cash flow forecast shall
include as defined in the Contract in Nepalese Rupees.
40. Payment 40.1 The Contractor shall submit to the Project Manager monthly
Certificates statements of the estimated value of the work executed less the
cumulative amount certified previously.
40.2 The Project Manager shall check the Contractors monthly statement
and certify the amount to be paid to the Contractor.
40.3 The value of work executed shall be determined by the Project
Manager.
40.4 The value of work executed shall comprise:
(a) In the case of an Unit Rate contract, the value of the quantities of
81
work in the Bill of Quantities that have been completed; or
(b) In the case of a lump sum contract, the value of work executed
shall comprise the value of completed activities in the Activity
Schedule.
40.5 The value of work executed shall include the valuation of Variations
and Compensation Events.
40.6 The Project Manager may exclude any item certified in a previous
certificate or reduce the proportion of any item previously certified in
any certificate in the light of later information.
41. Payments 41.1 Payments shall be adjusted for deductions for advance payments and
retention. The Employer shall pay the Contractor the amounts certified
by the Project Manager within 30 days of the date of each certificate. If
the Employer makes a late payment, the Contractor shall be paid
interest as indicated in the SCC on the late payment in the next
payment. Interest shall be calculated from the date by which the
payment should have been made up to the date when the late payment
is made at the prevailing rate of interest for commercial borrowing.
41.2 If an amount certified is increased in a later certificate or as a result of
an award by the Adjudicator or an Arbitrator, the Contractor shall be
paid interest upon the delayed payment as set out in this clause.
Interest shall be calculated from the date upon which the increased
amount would have been certified in the absence of dispute.
41.3 Unless otherwise stated, all payments and deductions shall be paid or
charged comprising the Contract Price.
41.4 Items of the Works for which no rate or price has been entered in BOQ
shall not be paid for by the Employer and shall be deemed covered by
other rates and prices in the Contract.
42. Compensation 42.1 The following shall be Compensation Events:

Events
(a) The Employer does not give access to a part of the Site by the
Site Possession Date pursuant to GCC 20.1.
(b) The Employer modifies the Schedule of Other Contractors in a
way that affects the work of the Contractor under the Contract.
(c) The Project Manager orders a delay or does not issue Drawings,
Specifications, or instructions required for execution of the Works
on time.
(d) The Project Manager instructs the Contractor to uncover or to
carry out additional tests upon work, which is then found to have
no Defects.
(e) The Project Manager unreasonably does not approve a
subcontract to be let.
(f) Ground conditions are substantially more adverse than could
reasonably have been assumed before issuance of the Letter of
Acceptance from the information issued to bidders (including the
Site Investigation Reports), from information available publicly
and from a visual inspection of the Site.
(g) The Project Manager gives an instruction for dealing with an
82
unforeseen condition, caused by the Employer, or additional
work required for safety or other reasons.
(h) Other contractors, public authorities, utilities, or the Employer
does not work within the dates and other constraints stated in the
Contract, and they cause delay or extra cost to the Contractor.
(i) The advance payment is delayed.
(j) The effects on the Contractor of any of the Employers Risks.
(k) The Project Manager unreasonably delays issuing a Certificate
of Completion.
42.2 If a Compensation Event would cause additional cost or would prevent
the work being completed before the Intended Completion Date, the
Contract Price shall be increased and/or the Intended Completion Date
shall be extended. The Project Manager shall decide whether and by
how much the Contract Price shall be increased and whether and by
how much the Intended Completion Date shall be extended.
43.3 As soon as information demonstrating the effect of each Compensation
Event upon the Contractors forecast cost has been provided by the
Contractor, it shall be assessed by the Project Manager, and the
Contract Price shall be adjusted accordingly. If the Contractors
forecast is deemed unreasonable, the Project Manager shall adjust the
Contract Price based on the Project Managers own forecast. The
Project Manager shall assume that the Contractor shall react
competently and promptly to the event.
42.4 The Contractor shall not be entitled to compensation to the extent that the
Employers interests are adversely affected by the Contractors not having
given early warning or not having cooperated with the Project Manager.
43. Tax 43.1 The Project Manager shall adjust the Contract Price if taxes, duties,
and other levies are changed between the date 30 days before the
submission of bids for the Contract and the date of the last Completion
certificate. The adjustment shall be the change in the amount of tax
payable by the Contractor, provided such changes are not already
reflected in the Contract Price or are a result of GCC 45.
44. Currency 44.1 The currency of Contracts shall be Nepalese Rupees.
45. Price 45.1 Prices shall be adjusted for fluctuations in the cost of inputs only if
Adjustment provided for in the SCC. If so provided, the amounts certified in each
payment certificate, before deducting for Advance Payment, shall be
adjusted by applying the respective price adjustment factor to the
payment amounts due.
45.2 Adjustment Formulate3: "The adjustment to the Interim Payment
Certificates in respect of changes in cost and legislation shall be
determined from separate formulae for each of the types of
construction work to be performed and Plant to be supplied. The
3 For complex Works involving several types of construction work with different inputs, a family of formulae will be
necessary. The various items of Daywork may also require different formulae, depending on the nature and source of
the inputs.
83
formulae will be of the following general type:
Where:
pn is a price adjustment factor to be applied to the amount for the
payment of the work carried out in the subject month, determined in
accordance with Sub-Clause 41;
A is a constant, specified in the Bidding Forms- Table of Price
Adjustment data,, representing the nonadjustable portion in
contractual payments;4
b, c, d, etc., coefficients representing the estimated proportion of each
cost element (labour, materials, equipment usage, etc.) in the Works
or sections thereof, net of Provisional Sums, as specified in the SCC;
Ln, Mn, En, etc., are the current cost indices or reference prices of
the cost elements for month n, determined pursuant to Sub-Clause
45.4, applicable to each cost element; and
Lo, Mo, Eo, etc., are the base cost indices or reference prices
corresponding to the above cost elements at the date specified in
Sub-Clause 45.4.
45.3 Sources of Indices and Weightings: "The sources of indices shall

be those listed in the Bidding Forms- Table of Price Adjustment data,
as approved by the Engineer. Indices shall be appropriate for their
purpose and shall relate to the Contractors proposed source of
supply of inputs on the basis of which his Contract shall have been
computed. As the proposed basis for price adjustment, the Contractor
shall have submitted with his bid the tabulation of Weightings and
Source of Indices in the Bidding Forms, which shall be subject to
approval by the Engineer."
45.4 Base, Current and Provisional Indices: "The base cost indices or
prices shall be those prevailing on the day 30 days prior to the latest
date for submission of bids. Current indices or prices shall be those
prevailing on the day 30 days prior to the last day of the period to
which a particular Interim Payment Certificate is related. If at any time
the current indices are not available, provisional indices as
determined by the Engineer will be used, subject to subsequent
correction of the amounts paid to the Contractor when the current
indices become available."
45.5 Adjustment after Completion: "If the Contractor fails to complete the
Works within the time for completion prescribed under Clause 1.1 (u),
adjustment of prices thereafter until the date of completion of the Works
shall be made using either the indices or prices relating to the prescribed
time for completion, or the current indices or prices, whichever is more
favorable to the Employer, provided that if an extension of time is granted
4 Insert a figure for factor A only where there is a part of the Contractors expenditures which will not be subject to
fluctuation in cost or to compensate for the unreliability of some indices. A should normally be 0.15. The sum of A, b,
c, d, etc., should be one.
84
pursuant to Clause 27, the above provision shall apply only to
adjustments made after the expiry of such extension of time."
45.6 Weightings: "The weightings for each of the factors of cost given in
the Bidding Forms shall be adjusted if, in the opinion of the Engineer,
they have been rendered unreasonable, unbalanced or inapplicable
as a result of varied or additional work already executed or instructed
under Clause 38 or for any other reason."
45.7 Subsequent Legislation: "If, after the date 30 days prior to the latest
date for submission of bids for the Contract, there occur changes to
any National Statute, Ordinance, Decree, or other Law or any
regulation or by-law of any local or other duly constituted authority, or
the introduction of any such Statute, Ordinance, Decree, Law,
regulation or by-law which causes additional or reduced cost to the
Contractor, other than under the preceding sub-clauses of this clause,
in the execution of the Contract, such additional or reduced cost shall,
after due consultation with the Employer and the Contractor, be
determined by the Engineer and shall be added to or deducted from
the Contract Price and the Engineer shall notify the Contractor
accordingly, with a copy to the Employer. Notwithstanding the
foregoing, such additional or reduced cost shall not be separately paid
or credited if the same shall already have taken into account in the
indexing of any inputs to the Price Adjustment Formulae in
accordance with the provisions of Sub-Clauses 45.2."
45.8 Where, price adjustment provision is not applicable pursuant to Sub-

clause 45.1 then the Contract is subject to price adjustment only for
construction material in accordance with this clause. If the prices of the
construction materials stated in the contract increase or decrease in an
unexpected manner in excess of ten (10%) percent in comparison to
the base price stated in the Bidding Form, then the price adjustment for
the increase or decrease of price of the construction material beyond
10% shall be made by applying the following formulas:
For unexpected increase in price
P =[R1 (R0 1.10)] Q
For unexpected decrease in price
P =[R1 (R0 0.90)] Q
Where:
P is price adjustment amount
R1 is the present price of the construction material (Source of indices

shall be those listed in the Bidding forms)
R0 is the base price of the construction material
Q is quantity of the construction material consumed in construction

during the period of price adjustment consideration
85
45.9 The Price Adjustment amount shall be limited to a maximum of 25% of
the initial Contract Amount unless otherwise is specified in the SCC.
45.10 The Price Adjustment provision shall not be applicable if the contract
is not completed in time due to the delay caused by the contractor or
the contract is a Lump sum Contract or a Fixed Budget Contract.
46. Retention 46.1 The Employer shall retain from each payment due to the Contractor the
proportion stated in the SCC until Completion of the whole of the Works.
46.2 Upon the issue of a Defects Liability Certificate by the Project

Manager, in accordance with GCC 55.1, half the total amount retained
shall be repaid to the Contractor and half when the Contractor has
submitted the Tax Clearance Certificate and the Project Manager has
certified that all Defects notified by the Project Manager to the
Contractor before the end of this period have been corrected. The
Contractor may substitute retention money with an on demand bank
guarantee.
47. Liquidated 47.1 The Contractor shall pay liquidated damages to the Employer at the rate
Damages per day stated in the SCC for each day that the Completion Date is later
than the Intended Completion Date. The total amount of liquidated
damages shall not exceed the amount defined in the SCC. The Employer
may deduct liquidated damages from payments due to the Contractor.
Payment of liquidated damages shall not affect the Contractors liabilities.
47.2 If the Intended Completion Date is extended after liquidated damages

have been paid, the Project Manager shall correct any overpayment of
liquidated damages by the Contractor by adjusting the next payment
certificate. The Contractor shall be paid interest on the overpayment,
calculated from the date of payment to the date of repayment, at the
rates specified in GCC 41.1.
48. Bonus 48.1 The Contractor shall be paid a Bonus calculated at the rate per calendar
day stated in the SCC for each day (less any days for which the
Contractor is paid for acceleration) that the Completion is earlier than the
Intended Completion Date. The Project Manager shall certify that the
Works are complete, although they may not be due to be complete.
49. Advance 49.1 The Employer shall make advance payment to the Contractor of the
Payment amounts stated in the SCC by the date stated in the SCC, against
provision by the Contractor of an unconditional bank guarantee from 'A'
class commercial Bank in a form and by a bank acceptable to the
Employer in amounts equal to the advance payment. The guarantee
shall remain effective until the advance payment has been repaid, but
the amount of the guarantee shall be progressively reduced by the
amounts repaid by the Contractor. Interest shall not be charged on the
advance payment.
49.2 The Contractor is to use the advance payment only to pay for
Equipment, Plant, Materials, and mobilization expenses required
specifically for execution of the Contract. The Contractor shall
demonstrate that advance payment has been used in this way by
supplying copies of invoices or other documents to the Project Manager.
49.3 The advance payment shall be repaid by deducting proportionate

amounts from payments otherwise due to the Contractor, following the
86
schedule of completed percentages of the Works on a payment basis.
No account shall be taken of the advance payment or its repayment in
assessing valuations of work done, Variations, price adjustments,
Compensation Events, Bonuses, or Liquidated Damages.
50. Securities 50.1 The Performance Security shall be provided to the Employer no later
than the date specified in the Letter of Acceptance and shall be issued
in an amount specified in the SCC, by a bank acceptable to the
Employer, and denominated in Nepalese Rupees. The Performance
Security shall be valid until a date 30 days from the date of issue of the
Certificate of Completion in the case of a bank guarantee.
51. Dayworks 51.1 If applicable, the Dayworks rates in the Contractors Bid shall be used
for small additional amounts of work only when the Project Manager
has given written instructions in advance for additional work to be paid
for in that way.
51.2 All work to be paid for as Dayworks shall be recorded by the

Contractor on forms approved by the Project Manager. Each
completed form shall be verified and signed by the Project Manager
within two days of the work being done.
51.3 The Contractor shall be paid for Dayworks subject to obtaining signed
Dayworks forms.
52. Cost of Repairs 52.1 Loss or damage to the Works or Materials to be incorporated in the
Works between the Start Date and the end of the Defects Correction
periods shall be remedied by the Contractor at the Contractors cost if
the loss or damage arises from the Contractors acts or omissions.
E. Finishing the Contract
53. Completion 53.1 The Contractor shall request the Project Manager to issue a certificate
of Completion of the Works, and the Project Manager shall do so upon
deciding that the work is completed.
54. Taking Over 54.1 The Employer shall take over the Site and the Works within seven
days of the Project Managers issuing a certificate of Completion.
55. Final Account 55.1 The Contractor shall supply the Project Manager with a detailed
account of the total amount that the Contractor considers payable
under the Contract before the end of the Defects Liability Period. The
Project Manager shall issue a Defects Liability Certificate and certify
any final payment that is due to the Contractor within 60 days of
receiving the Contractors account if it is correct and complete. If it is
not, the Project Manager shall issue within 60 days a schedule that
states the scope of the corrections or additions that are necessary. If
the Final Account is still unsatisfactory after it has been resubmitted,
the Project Manager shall decide on the amount payable to the
Contractor and issue a payment certificate.
56. Operating and 56.1 If as built Drawings and/or operating and maintenance manuals are
Maintenance required, the Contractor shall supply them by the dates stated in the SCC.
87
Manuals 56.2 If the Contractor does not supply the Drawings and/or manuals by the
dates stated in the SCC pursuant to GCC 55.1, or they do not receive
the Project Managers approval, the Project Manager shall withhold the
amount stated in the SCC from payments due to the Contractor.
57. Termination 57.1 The Employer or the Contractor may terminate the Contract if the other
party causes a fundamental breach of the Contract.
57.2 Fundamental breaches of Contract shall include, but shall not be

limited to, the following:
(a) the Contractor stops work for 30 days when no stoppage of work
is shown on the current Program and the stoppage has not been
authorized by the Project Manager;
(b) the Project Manager instructs the Contractor to delay the

progress of the Works, and the instruction is not withdrawn
within 30 days;
(c) the Employer or the Contractor is made bankrupt or goes into

liquidation other than for a reconstruction or amalgamation;
(d) a payment certified by the Project Manager is not paid by the

Employer to the Contractor within 84 days of the date of the
Project Managers certificate;
(e) the Project Manager gives Notice that failure to correct a

particular Defect is a fundamental breach of Contract and the
Contractor fails to correct it within a reasonable period of time
determined by the Project Manager;
(f) the Contractor does not maintain a Security, which is required;

and
(g) the Contractor has delayed the completion of the Works by the
number of days for which the maximum amount of liquidated
damages can be paid, as defined in the SCC.
(h) if the Contractor, in the judgment of the Employer has engaged

in corrupt or fraudulent practices in competing for or in executing
the Contract, pursuant to GCC 58.1.
57.3 When either party to the Contract gives notice of a breach of Contract
to the Project Manager for a cause other than those listed under GCC
57.2 above, the Project Manager shall decide whether the breach is
fundamental or not.
57.4 Notwithstanding the above, the Employer may terminate the Contract
for convenience.
57.5 If the Contract is terminated, the Contractor shall stop work

immediately, make the Site safe and secure, and leave the Site as
soon as reasonably possible.
58. Fraud and 58.1 If the Employer determines that the Contractor has engaged in corrupt,
Corruption fraudulent, collusive, coercive or obstructive practices, in competing for
or in executing the Contract, then the Employer may, after giving 14
88
days notice to the Contractor, terminate the Contractor's employment
under the Contract and expel him from the Site, and the provisions of
Clause 56 shall apply as if such expulsion had been made under Sub-
Clause 56.5 [Termination by Employer].
58.2 Should any employee of the Contractor be determined to have

engaged in corrupt, fraudulent, collusive, coercive, or obstructive
practice during the execution of the Works, then that employee shall be
removed in accordance with Clause 9.
58.3 Without prejudice to any other rights of the Employer under this
Contract, GoN may blacklist the Contractor for its conduct up to three
(3) years on the following grounds and seriousness of the act
committed by the Contractor:
(a) if it is established that the Contractor has committed substantial
defect in implementation of the Contract or has or has not
substantially fulfilled its obligations under the Contract
For the purposes of this Sub-Clause:
(i) corrupt practice is the offering, giving, receiving or soliciting,
directly or indirectly, of anything of value to influence improperly
the actions of another party;
(ii) fraudulent practice5 is any act or omission, including a
misrepresentation, that knowingly or recklessly misleads, or
attempts to mislead, a party to obtain a financial or other benefit or
to avoid an obligation;
(iii) collusive practice6 is an arrangement between two or more
parties designed to achieve an improper purpose, including to
influence improperly the actions of another party;
(iv) coercive practice7 is impairing or harming, or threatening to
impair or harm, directly or indirectly, any party or the property of
the party to influence improperly the actions of a party;
(v) obstructive practice is
(aa) deliberately destroying, falsifying, altering or concealing of
evidence material to the investigation or making false
statements to investigators in order to materially impede a
investigation into allegations of a corrupt, fraudulent, coercive
or collusive practice; and/or threatening, harassing or
intimidating any party to prevent it from disclosing its
knowledge of matters relevant to the investigation or from
pursuing the investigation; or
(bb) acts intended to materially impede the exercise of the Banks
inspection and audit rights provided for under Sub-Clause 22.2.
5 a party refers to a public official; the terms benefit and obligation relate to the procurement process or contract
execution; and the act or omission is intended to influence the procurement process or contract execution.
6 parties refers to participants in the procurement process (including public officials) attempting to establish bid prices
at artificial, non competitive levels.
7 a party refers to a participant in the procurement process or contract execution.
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59. Black Listing 59.1 Without prejudice to any other rights of the Employer under this Contract,
GoN may blacklist a Bidder for its conduct one (1) to three (3) years on
the following grounds and seriousness of the act committed by the bidder:
(c) if it is established that the Contractor has committed substantial

defect in implementation of the contract or has not substantially
fulfilled its obligations under the contract or the completed work
is not of the specified quality as per the contract.
60. Instructions, 60.1 The Contractor shall permit the GoN/DP to inspect the Contractors
Inspections and accounts and records relating to the performance of the Contractor and
Audits to have them audited by auditors appointed by the GoN/DP, if so
required by the GoN/DP.
61. Payment upon 61.1 If the Contract is terminated because of a fundamental breach of
Termination Contract by the Contractor, the Project Manager shall issue a certificate
for the value of the work done and Materials ordered less advance
payments received up to the date of the issue of the certificate and less
the percentage to apply to the value of the work not completed, as
indicated in the SCC. Additional Liquidated Damages shall not apply. If
the total amount due to the Employer exceeds any payment due to the
Contractor, the difference shall be a debt payable to the Employer.
61.2 If the Contract is terminated for the Employers convenience or

because of a fundamental breach of Contract by the Employer, the
Project Manager shall issue a certificate for the value of the work done,
Materials ordered, the reasonable cost of removal of Equipment,
repatriation of the Contractors personnel employed solely on the
Works, and the Contractors costs of protecting and securing the
Works, and less advance payments received up to the date of the
certificate.
62. Property 62.1 All Materials on the Site, Plant, Equipment, Temporary Works, and
Works shall be deemed to be the property of the Employer if the
Contract is terminated because of the Contractors default.
63. Release from 63.1 If the Contract is frustrated by the outbreak of war or by any other
Performance event entirely outside the control of either the Employer or the
Contractor, the Project Manager shall certify that the Contract has
been frustrated. The Contractor shall make the Site safe and stop
work as quickly as possible after receiving this certificate and shall be
paid for all work carried out before receiving it and for any work carried
out afterwards to which a commitment was made.
90
Section 8 - Special Conditions of Contract
The following Special Conditions of Contract shall supplement the GCC. Whenever there is a
conflict, the provisions herein shall prevail over those in the GCC.
91
Special Conditions of Contract
A. General
GCC 1.1 (q) The Employer is [Insert the Name and Address of the Employer]
GCC 1.1 (u) The Intended Completion Date for the whole of the Works shall be ........................
[If different dates are specified for completion of the Works by section (sectional
completion or milestones), these dates should be listed here]
GCCs 1.1 (bb) The Project Manager is ..............................................................................

& 4.1
GCC 1.1 (dd) The Site is located at ................ and is defined in drawings No. .........
GCC 1.1 (gg) The Start Date shall be .....................
GCC 1.1 (kk) The Works consist of ...............................................................................................
GCC 2.2 Sectional Completions are: .............................................
GCC 2.3(i) The following documents also form part of the Contract: ..................................
- Value Added Tax (VAT) certificate
- PAN certificate
- Tax clearance certificate
GCC 3.1 The language of the contract is ENGLISH/NEPALI

The law that applies to the Contract is the law of ..........NEPAL........
GCC 8.1 Schedule of other contractors: .........................................................................
GCC 13.1 The minimum insurance amounts shall be:

(a) for the Works, Plant and Materials: .........................................
(b) For loss or damage to Equipment: ...........................................
(c) for loss or damage to property (except the Works, Plant, Materials, and
Equipment) in connection with Contract .....................................
(d) for personal injury or death:
(i) of the Contractors employees: ..............................
(ii) of other people: ....................................................
The minimum deductibles shall be:
(a) for the Works, Plant and Materials: .........................................
(b) For loss or damage to Equipment: ...........................................
(c) for loss or damage to property (except the Works, Plant, Materials, and
Equipment) in connection with Contract .....................................
92
(d) for personal injury or death:
i) of the Contractors employees: ..............................
ii) of other people: ....................................................
GCC 14.1 Site Investigation Reports are: .................................................
GCC 16.1 The completion date shall be.
GCC 17.1 The following shall be designed by the Contractor:

..................................................................................................
GCC 20.1 The Site Possession Date(s) shall be: .............................................
GCC 23.2 A dispute of the procurement contract having contract price valuing up to one
hundred million Rupees shall be resolved by the adjudicator and a dispute of the
procurement contract having contract price more than that shall be resolved by a
three-member dispute resolution committee.
GCC 24.1 Appointing Authority for the Adjudicator: .......................................
GCC 24.2 [insert the name of the Adjudicator or DRC Members]

Note: If the adjudicator is identified an agreed during the contract agreement, insert
the name of the Adjudicator or DRC Members. If not identified, the Adjudicator or
DRC Members shall have to be agreed and appointed whenever the dispute arises
GCC 25.2 The Adjudicator/DRC Members shall be paid by the hour at the rate of: ....................
GCC 25.3 Institution whose arbitration procedures shall be used: .

Sub-Clause 25.3 Any dispute between the Employer and Contractor arising in
connection with the present Contract shall be referred to arbitration in accordance
with the rule of Nepal Council of Arbitration.
The place of arbitration shall be: .................................................
B. Time Control
GCC 26.1 The Contractor shall submit for approval a Program for the Works within ..............
days from the date of the Letter of Acceptance.
GCC 26.3 The period between Program updates is ................................. days.

The amount to be withheld for late submission of an updated Program is ...............
C. Quality Control
GCC 34.1 The Defects Liability Period is: ....................... days.
D. Cost Control
93
GCC 41.1 [insert the prevailing interest rate ..]
GCC 45.2 The Contract ................. subject to price adjustment in accordance with GCC
Clause 45, and the following information regarding coefficients .................... apply.
The coefficients and indices for adjustment of prices in Nepalese Rupees shall be
as specified in the Table of Adjustment Data submitted together with the Letter of
Bid.
GCC 45.9 [insert the maximum amount if different from specified]
GCC 46.1 The proportion of payments retained is: 5 (FIVE) PERCENT
GCC 47.1 The liquidated damages for the whole of the Works are 0.05% per day. The
maximum amount of liquidated damages for the whole of the Works is 10
PERCENT of the final Contract Price.
GCC 48.1 The Bonus for the whole of the Works is ........................ per day. The maximum
amount of Bonus for the whole of the Works is ........................of the final Contract
Price.
GCC 49.1 The Advance Payments shall be: ............................... and shall be paid to the
Contractor no later than .................................
GCC 49.3 Proportionate amounts to be repaid [insert following the Schedule of completed
percentage of works on a payment basis].
GCC 50.1 The Performance Security amount is ...................................
E. Finishing the Contract
GCC 56.1 The date by which operating and maintenance manuals are required is .................
The date by which as built drawings are required is .....................
GCC 56.2 The amount to be withheld for failing to produce as built drawings and/or
operating and maintenance manuals by the date required in GCC 58.1
is ..........................
GCC 57.2 (g) The maximum number of days is: ......................
GCC 61.1 The percentage to apply to the value of the work not completed, representing the
Employers additional cost for completing the Works, is ...................................
94
Section 9 - Contract Forms
This Section contains forms which, once completed, will form part of the Contract. The forms for
Performance Security and Advance Payment Security, when required, shall only be completed by the
successful Bidder after contract award.
Table of Forms
Letter of Intent ................................................................................................................................................ 96
Letter of Acceptance ...................................................................................................................................... 97
Contract Agreement ....................................................................................................................................... 98
Performance Security .................................................................................................................................... 99
Advance Payment Security ......................................................................................................................... 100
95
Letter of Intent
[on letterhead paper of the Employer]
. . . . . . . date. . . . . . .
Notes on Letter of Intent
The issuance of Letter of Intent is the information of the selection of the bid of the successful bidder by
the Employer and for providing information to other unsuccessful bidders who participated in the bid as
regards to the outcome of the procurement process. This standard form of Letter of Intent to Award
should be filled in and sent to the successful Bidder only after evaluation and selection of substantially
responsible lowest evaluated bid.
To: . . . . . . . . . . name and address of the Contractor . . . . . . . . . .
Subject: . . . . . . . . . . Issuance of letter of intent to award the contract . . . . . . . . . .
This is to notify you that, it is our intention to award the contract . dated ... for
execution of the . . . . . . . . .name of the contract and identification number, as given in the Contract
Data/SCC to you as your bid price . . . . . . . . .amount in figures and words in Nepalese Rupees . as
corrected and modified in accordance with the Instructions to Bidders is hereby selected as
substantially responsive lowest evaluated bid.
Authorized Signature: .........................................................................
Name: .................................................................................................
Title: ....................................................................................................
CC:
[Insert name and address of all other Bidders, who submitted the bid]
96
Letter of Acceptance
[on letterhead paper of the Employer]
. . . . . . . date. . . . . . .
To: . . . . . . . . . . name and address of the Contractor . . . . . . . . . .
Subject: . . . . . . . . . . Notification of Award
This is to notify that your Bid dated . . . . date . . . . for execution of the . . . . . . . . . .name of the contract
and identification number, as given in the Contract Data/SCC . . . . . . . . . . for the Contract price of Nepalese
Rupees [insert amount in figures and words in Nepalese Rupees], as corrected in accordance with the
Instructions to Bidders is hereby accepted in accordance with the Instruction to Bidders.
You are hereby instructed to contract this office to sign the formal contract agreement within 15 days.
As per the Conditions of Contract, you are also required to submit Performance Security, as specified
in SCC, consisting of a Bank Guarantee in the format included in Section 9 (Contract Forms) of the
Bidding Document.
The Employer shall forfeit the bid security, in case you fail to furnish the Performance Security and to
sign the contract within specified period.
Authorized Signature: .........................................................................
Name and Title of Signatory: ..............................................................
97
Contract Agreement
THIS AGREEMENT made the . . . . . .day of . . . . . . . . . . . . . . . . ., . . . . . . ., between . . . . . name of
the Employer. . . . .. . . . . (hereinafter the Employer), of the one part, and . . . . . name of the Contractor. . . .
.(hereinafter the Contractor), of the other part:
WHEREAS the Employer desires that the Works known as . . . . . name of the Contract. . . . .should
be executed by the Contractor, and has accepted a Bid by the Contractor for the execution and
completion of these Works and the remedying of any defects therein,
The Employer and the Contractor agree as follows:
1. In this Agreement words and expressions shall have the same meanings as are respectively assigned to them
in the Contract documents referred to.
2. The following documents shall be deemed to form and be read and construed as part of this Agreement.
(a) - the Letter of Acceptance;

(b) - the Letter of Bid;
(c) - the Addenda Nos . . . . . insert addenda numbers if any. . . . .
(d) - the Special Conditions;
(e) - the General Conditions;
(f) - Bills of Quantities (BOQ);
(g) - the Specification;
(h) - the Drawings;
(i) - the completed Schedules; and
(j) - Bidding Forms -Table of Price Adjustment Data
(k) Any other document
3. In consideration of the payments to be made by the Employer to the Contractor as indicated in this
Agreement, the Contractor hereby covenants with the Employer to execute the Works and to remedy
defects therein in conformity in all respects with the provisions of the Contract.
4. The Employer hereby covenants to pay the Contractor in consideration of the execution and completion of
the Works and the remedying of defects therein, the Contract Price or such other sum as may become
payable under the provisions of the Contract at the times and in the manner prescribed by the Contract.
IN WITNESS whereof the parties hereto have caused this Agreement to be executed in accordance with the laws of
Nepal.on the day, month and year indicated above.
Signed by ......................................................... Signed by .............................................................
for and on behalf of the Employer for and on behalf the Contractor
in the presence of in the presence of
Witness, Name, Signature, Address, Date Witness, Name, Signature, Address, Date
98
Performance Security
( On letterhead paper of the 'A' class commercial Bank)
................................. Banks Name, and Address of Issuing Branch or Office .................................
Beneficiary: ............................... Name and Address of Employer ...........................................

Date: .........................................................................................................................
Performance Guarantee No.: .........................................................................................
We have been informed that . . . . . name of the Contractor. . . . . (hereinafter called "the Contractor")
has entered into Contract No. . . . . . reference number of the Contract. . . . . dated . . . . . . . .with you,
for the execution of . . . . . . name of contract and brief description of Works. . . . . (hereinafter called "the
Contract").
Furthermore, we understand that, according to the conditions of the Contract, a performance
guarantee is required.
At the request of the Contractor, we . . . . . name of the Bank. . . . . hereby irrevocably undertake to pay
you any sum or sums not exceeding in total an amount of . . . . . name of the currency and amount in
figures*. . . . . . (. . . . . amount in words. . . . . ) such sum being payable in Nepalese Rupees, upon
receipt by us of your first demand in writing accompanied by a written statement stating that the
Contractor is in breach of its obligation(s) under the Contract, without your needing to prove or to
show grounds for your demand or the sum specified therein.
This guarantee shall expire, no later than the . . . . . Day of . . . . . . . . . . , . . . . . . **, and any demand
for payment under it must be received by us at this office on or before that date.
............................
Seal of Bank and Signature(s)
Note: All italicized text is for guidance on how to prepare this demand guarantee and shall be
deleted from the final document.
* The Guarantor shall insert an amount representing the percentage of the Contract Price
specified in the Contract in Nepalese Rupees.
** Insert the date one hundred eighty days after the date specified for the Defect Liability
Period. The Employer should note that in the event of an extension of the time for completion
of the Contract, the Employer would need to request an extension of this guarantee from the
Guarantor. Such request must be in writing and must be made prior to the expiration date
established in the guarantee. In preparing this guarantee, the Employer might consider adding
the following text to the form, at the end of the penultimate paragraph: The Guarantor agrees
to a one-time extension of this guarantee for a period not to exceed [six months], in response
to the Employers written request for such extension, such request to be presented to the
Guarantor before the expiry of the guarantee.
99
Advance Payment Security
( On letterhead paper of the 'A' class commercial Bank)
................................. Banks Name, and Address of Issuing Branch or Office ................................
Beneficiary: ................................ Name and Address of Employer ..........................................

Date: .........................................................................................................................
Advance Payment Guarantee No.: .................................................................................
We have been informed that . . . . . name of the Contractor. . . . . (hereinafter called "the Contractor")
has entered into Contract No. . . . . . reference number of the Contract. . . . . dated . . . . . . . .with you,
for the execution of . . . . . . name of contract and brief description of Works. . . . . (hereinafter called "the
Contract").
Furthermore, we understand that, according to the Conditions of the Contract, an advance payment in
the sum . . . . . name of the currency and amount in figures*. . . . . . (. . . . . amount in words. . . . . ) is to be
made against an advance payment guarantee.
At the request of the Contractor, we . . . . . name of the Bank. . . . . hereby irrevocably undertake to pay
you any sum or sums not exceeding in total an amount of . . . . . name of the currency and amount in
figures*. . . . . . (. . . . . amount in words. . . . . ) upon receipt by us of your first demand in writing
accompanied by a written statement stating that the Contractor is in breach of its obligation under the
Contract because the Contractor used the advance payment for purposes other than the costs of
mobilization in respect of the Works.
It is a condition for any claim and payment under this guarantee to be made that the advance
payment referred to above must have been received by the Contractor on its account number . . . . .
Contractors account number. . . . . at . . . . . name and address of the Bank. . . . . .
The maximum amount of this guarantee shall be progressively reduced by the amount of the advance
payment repaid by the Contractor as indicated in copies of interim statements or payment certificates
which shall be presented to us. This guarantee shall expire, at the latest, upon our receipt of a copy
of the interim payment certificate indicating that eighty (80) percent of the Contract Price has been
certified for payment, or on the . . . day of . . . . . . . , . . . . . **, whichever is earlier. Consequently, any
demand for payment under this guarantee must be received by us at this office on or before that date.
............................
Seal of Bank and Signature(s)
Note: All italicized text is for guidance on how to prepare this demand guarantee and shall be
deleted from the final document.
* The Guarantor shall insert an amount representing the amount of the advance payment in
Nepalese Rupees of the advance payment as specified in the Contract.
** Insert the date Thirty days after the expected completion date. The Employer should note that in
the event of an extension of the time for completion of the Contract, the Employer would need to
request an extension of this guarantee from the Guarantor. Such request must be in writing and must
be made prior to the expiration date established in the guarantee. In preparing this guarantee, the
Employer might consider adding the following text to the form, at the end of the penultimate
paragraph: The Guarantor agrees to a one-time extension of this guarantee for a period not to
exceed [six months], in response to the Employers written request for such extension, such request
to be presented to the Guarantor before the expiry of the guarantee.
100

Procurement of Works For Above 6 Million Rupees NCB July 2010

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STANDARD BIDDING DOCUMENT

(For above 6 million Rupees)

[Insert the name of Public

Invitation for Bids No.:

While using the SBD, the following directions should be considered.

INVITATION OF BIDS ------------------------------------------------------------------ 6

PART I BIDDING PROCEDURES

Section 2 - Bid Data Sheet (BDS) ---------------------------------------------- 27

Section 3 - Evaluation and Qualification Criteria (EQC) ---------------- 31

Section 4 - Bidding Forms (BDF) ---------------------------------------------- 42

Section 6 - Preamble to the Bill of Quantities (BOQ) --------------------- 66

PART III CONDITIONS OF CONTRACT AND CONTRACT FORMS

Section 8 - Special Conditions of Contract (SCC) ------------------------- 91

Section 9 - Contract Forms (COF) --------------------------------------------- 95

Name of the Development Partner [if applicable]: ______________________

1. Scope of Bid ...................................................................................................................... 9

B. Contents of Bidding Document ....................................................................................................... 13

6. Sections of Bidding Document ...................................................................................... 13

C. Preparation of Bids ........................................................................................................................... 15

9. Cost of Bidding ............................................................................................................... 15

D. Submission and Opening of Bids .................................................................................................... 19

21. Sealing and Marking of Bids .......................................................................................... 19

26. Confidentiality ................................................................................................................. 21

F. Award of Contract ............................................................................................................................. 24

36. Award Criteria .................................................................................................................. 24

1.2 Throughout this Bidding Document:

(a) the term in writing means communicated in written form and

(c) day means calendar day.

DP Funded: The GoN has applied for or received financing (hereinafter

2.3 Public Entity' own Resource Funded.

(i) corrupt practice means the offering, giving, receiving, or

(ii) fraudulent practice means any act or omission, including a

(iii) coercive practice means impairing or harming, or threatening to

(iv) collusive practice means an arrangement between two or

(v) obstructive practice means:

(aa) deliberately destroying, falsifying, altering or concealing of

(bb) acts intended to materially impede the exercise of the

(c) will sanction a firm or individual, including declaring ineligible,

(a) give or propose improper inducement directly or indirectly,

(a) if convicted by a court of law in a criminal offence which

3.4 A bidder declared blacklisted and ineligible by the GoN, Public

(a) will reject a proposal if it determines that the bidder

(b) the JV shall nominate a Representative who shall have the

(a) they have controlling partners in common; or

(d) they have a relationship with each other, directly or through

(f) a Bidder or any of its affiliates participated as a consultant in the

4.4 A firm that is under a declaration of ineligibility by the GoN/DP in

4.5 Enterprises owned by Government shall be eligible only if they can

4.6 Bidders shall provide such evidence of their continued eligibility

4.7 In case a prequalification process has been conducted prior to the

4.8 Firms shall be excluded in any of the cases, if

(a) by an act of compliance with a decision of the United Nations

(b) DP Funded: as a matter of law or official regulation, Nepal prohibits

(c) DP Funded: a firm has been determined to be ineligible by the DP

B. Contents of Bidding Document

7. Clarification of 7.1 A prospective Bidder requiring any clarification of the Bidding

8.3 To give prospective Bidders reasonable time in which to take an

11. Documents 11.1 The Bid shall comprise the following:

ITB 10.1 The language of the bid is: _____(English / Nepali)